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business
paper 2
formulas
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Created by
Emily Land
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Cards (40)
net cash flow =
inflows
-
outflows
closing
balance = opening balance +
net cash flow
cumulative
flow = sum of all
closing
balances
sales revenue =
selling price x quantity
total variable costs =
variable cost per unit x quantity
total costs =
fixed
costs +
variable
costs
profit
= total revenue - total costs
break even output
=
fixed costs
/ contribution
contribution per unit =
selling price
-
variable costs
total contribution =
contribution
per
unit x quantity sold
margin of safety
= actual output -
break even
output
profit =
contribution
-
fixed
costs
budget
variance = budget amount - actual amount
gross profit =
sales revenue
-
cost
of
sales
gross profit margin = (
gross profit
/ revenue)
x100
operating profit
= gross profit - operating costs
operating profit margin
= (
operating profit
/
revenue
)
x100
net profit = operating profit - excess costs
net profit margin = (net profit / revenue) x100
capital employed = non current liabilities + equity
current ratio =
current assets
/
current liabilities
acid
test ratio = (
current assets
- inventory) / current liabilities
market share
= (sales by business / total market sales) x100
percentage change
= (difference/original) x100
labour productivity =
output
per
period
/
number
of
employees
in
period
capacity utilisation = (actual output/maximum output) x100
average rate of return
= (net profit per year/cost) x100
payback period
= minus the yearly values from investment till positive then
years + (amount needed / yearly amount) x12
discounted cash flow
= NPV = cash flow x discount factor = for each year = add all up and accept if positive
decision trees = do for both success and failure = probability x expected value
total float = LFT - EST - duration
working capital = current assts - current liabilities
free float = EST next task - EST this task - duration
gearing ratio = (
non
current
liabilities /
capital
employed) x100
capital employed =
share
capital
+
retained earnings
+
non current liabilities
total equity
+
non current liabilities
return on capital employed = (operating profit /
capital employed
)
x100
labour productivity = total output / average
number
of
employees
labour
turnover
= (number
leaving
/
number
in post) x100
labour
retention = (number of staff staying / number in post) x100
rate of absenteeism = (number of staff absent / total employed) x100