Business formulas
Cards (23)
- Break even: Fixed costs/contribution per unit
- Market shares: sales/total market sales x 100
- Contribution per unit: selling price - variable price per unit
- Profit: total revenue - total costs
- Sales revenue: price x qty
- Total costs: fixed costs + variable costs
- Gross profit : revenue - costs of goods sold
- Net profit: gross profit - all costs
- Labour turnover: number of staff leaving / number of staff x 100
- Labour productivity : output / number of employees
- Absenteeism: number of employees absent / number of employees
- Capacity utlisation : current output / max possible output x100
- Working capital: current assets - current liabilities
- Capital employed : total equity + non current liabilities
- Price elasticity of demand: % change in qty demanded / % change in price
- Income elasticity of demand : % change in qty demanded / % change in income
- Acid test ratio : current assets - stock / current liabilities
- Current ratio: current assets / current liabilities
- Gearing: non current liabilities / capital employed x 100
- ROCE: net profit / capital employed
- Net cash flow: total inflows - total outflows
- Straight line depreciation : cost - residual value / life
- Annual rate of return: profit/initial cost x 100 1) accumulated cash flow - net cash flow x life2) profit - cash flow - initial cost3) average annual profit: profit / life4) average annual profit / initial cost x100