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Subdecks (2)
formulas
business
37 cards
increasing efficiency and labour productivity
business
37 cards
Cards (111)
total costs
fixed costs
+
variable costs
profit
total
revenue
- total
costs
OR total contribution - fixed costs
total variable costs
variable costs
per unit x number of
units sold
variable costs per unit
total variable costs /
number
of
units
sold
sales revenue or turnover
selling price
per unit x number of
units
sold
market capitalisation
of a
business
number of
issued shares
x
current share price
expected
value of a
decision with two possible outcomes ( A & B )
(pay off of A x probability of A) + (pay off of B x probability of B)
net gain (
decision
tree )
expected value
-
initial cost
of decision
market growth
change in size of market /
original
size x
100
sales growth
change in
sales
/ original sales x
100
market share
sales of a product or business /
total market sales
x
100
operating profit margin
operating profit
/ sales revenue x
100
operating profit
gross profit
-
expenses
gross profit
revenue
-
cost of sales
profit for the year
operating profit +
profit
from other activities - net finance costs -
tax
profit for the year margin
profit for the year /
sales revenue
x
100
labour turnover
number of staff leaving /
average number
of staff employed x
100
employee retention rate
number of staff who stay throughout the year /
average number
of staff employed by the business during the year x
100
employee
costs as a percentage of
turnover
employee costs
/ sales revenue x
100
labour costs per unit
labour costs
/ units of
output
return on capital employed
(
ROCE
)
operating profit /
capital employed
( total equity + non current liabilities ) x
100
current ratio
current assets
/
current liabilities
gearing %
non current liabilities /
capital employed
(total equity + non-current liabilities ) x
100
payables (creditor) days
payables / cost of
sales
x
365
receivables (
debtor
) days
receivables / sales revenue x 365
inventory turnover
cost of
goods
sold /
average inventory
held
average rate of return
%
(net return from project (
£
) / number of years) / initial cost of project (
£
) x 100
variance
budgeted figure
-
actual figure
how is lead time calculated ?
level
of
buffer
inventory - reorder level
margin of safety
actual level of output -
break even
level of output
total contribution
total
revenue
- total
variable
costs
contribution per unit
selling price
-
variable costs
per unit
capcity utilisation
actual level of output /
maximum
level of output x
100
return on investment
profit from the
investment
/ cost of
investment
x 100
added value
sales revenue - cost of bought in
goods
and
services
total equity
share capital
+
retained profits
break-even
fixed costs / contribution per
unit
See all 111 cards