business

Subdecks (2)

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