Formulas

• Revenue (Sales or Turnover)


  Selling price per unit x No. of units sad
• Total costs


  Fixed costs + Variable costs
• Profit


  Total revenue - Total costs OR Total contribution − Fixed costs
• Market capitalisation


  No. of Issued shares x current share price
• Expected value (A and B)


  Pay-off of A x probability of A + Pay-off of B x probability of B
• Net Gain


  Expected value - Initial cost of decision
• Market Growth (%)


  Change in size of market over a period / original size of market x 100
• Market Share (%)


  Sales of one product / total sales in the market x 100
• Added Value


  Sales revenue - costs of bought in goods and services
• Labour productivity


  Output over a time period / No. of employees
• Unit cost (average cost)


  Total cost / No. of units of output
• Capacity utilisation (%)


  Actual output / Max possible output x 100
• Return on Investment (ROI) (%)


  Profit from the investment / Cost of the investment x 100
• Gross Profit


  Revenue - cost of sales
• Operating Profit


  Gross profit - Operating expenses
• Profit for the year margin (%)


  Profit for the year / Revenue x 100
• Gross Profit Margin (%)

  Gross Profit / Revenue x 100
• Operating Profit Margin (%)


  Operating Profit / Revenue x 100
• Variance


  Budgeted Figure - Actual figure
• Contribution per unit


  Selling price - Variable cost per unit
• Total contribution


  Total Revenue - Total Variable costs

  OR

  Contribution per unit x Units sold
• Break-even output


  Fixed costs / Contribution per unit (Selling price - Variable cost per unit)
• Margin of safety


  Actual level of output - Break-even level of output
• Labour turnover (%)


  No. of staff leaving / No. of staff employed x 100
• Labour costs per unit

  Total labour costs / Units of output
• ROCE (%)


  Operating Profit / Capital employed (Total Equity + Non-Current Liabilities) x 100
• Gearing (%)


  Non-current liabilities / Capital Employed (Total equity & Non-current liabilities) x 100
• Payables Days


  Payables / Cost of sales x 365
• Receivables days


  Receivables/Revenue x 365
• Average rate of return (%)

  Average annual return / Initial cost of project x 100
• Variable Costs


  Variable costs per unit x No. of units sold
• Profit for the Year

  Operating Profit + Profit from other activities - Net finance costs - Tax
• Current Ratio


  Current Assets / Current Liabilities
• Receivables Days


  Receivables / Revenue x 365
• Inventory Turnover


  Cost of sales / Average inventories held
• Profit (Contribution)


  Total contribution − Fixed costs