Finance formulas

• rev/turnover

  Price x quantity
• variable cost

  vc per unit x quantity sold
• total cost

  fc + vc
• profit

  rev - cost

  total contribution - fc
• market capitalisation

  number of issued shares x share price
• market growth

  change in size of market / total sales x 100
• market share

  sales of one product / total sales in market x 100
• added value

  sales rev - cost of goods ands services
• labour productivity

  output/ average number of employees
• unit cost

  total cost/ number of units of out put
• capacity utilisation

  actual output / max possible output
• return on investment

  Profit from investment/cost of investment x 100
• gross profit

  rev - cost of sales
• operating profit
• operating profit

  gross profit - operating expenses
• profit for the year

  operating profit + profit from other activities - net finance cost - tax
• gross profit margin

  gp / rev x 100
• operating profit margin

  op/ rev x 100
• profit for year margin

  profit for year/ rev x 100
• contribution per unit

  selling price - vc per unit
• total contribution

  contribution per unit x unit sold
• total contribution

  total rev - total vc
• break even output

  fc/ contribution per unit
• margin of safety

  actual output - break even output
• labour turnover

  number of staff leaving/ number of staff employed x 100
• employee retention

  number of staff not left / average number of employees
• employee cost

  employee cost / turnover x 100
• labour cost

  labour cost / units of output
• payables days

  payables / cost of sales x 365
• receivables days

  receivables / revenue x 365