formulas

• Total costs


  fixed costs + variable costs
• Unit cost


  Total costs / output
• Average revenue


  total revenue/ number of sales
• Contribution per unit


  Selling price - variable cost per unit
• Total contribution


  Contribution per unit x number of units sold
• Profit


  Total contribution - fixed costs
• Profit


  revenue - cost of sales
• Break even


  Fixed costs / contribution per unit
• Target level of profit

  non current costs +(target profit /cpu)
• Average annual profit


  Profit / life of product
• Return on investment


  Average annual profit/ cost of investment
• Index numbers


  Number in year required/ number in base year x100
• Revenue


  Price x sales
• Cost of sales


  opening inventory + purchases - closing inventory
• Gross profit


  Sales revenue - cost of sales
• Operating profit


  Gross Profit - Expenses
• Profit before tax


  Operating profit - finance costs
• Profit for the year

  Net profit - tax - dividends
• Net assets


  total assets - total liabilities
• Straight line depreciation


  Initial cost - residual value / life of asset
• Current ratio


  current assets / current liabilities
• Acid test


  (current assets- stock) / current liabilities
• Gearing ratio


  non-current liabilities/capital employed x 100
• Debt to equity ratio

  Debt / Equity x100
• Interest cover


  operating profit/interest payable
• Asset turnover


  Revenue / non current assets
• Stock turnover


  Cost of sales/average stock
• Debtor days


  Trade Receivables / Revenue x 365
• Creditor days


  Trade payables/cost of sales x 365
• Gross profit margin


  Gross profit/sales revenue x 100
• Net profit margin


  Net profit/sales revenue x 100
• Return on capital employed

  Operating profit / capital employed x 100
• Return on equity


  Profit for the year / shareholders equity
• Dividend per share


  total dividends / total number of issued shares
• Dividend yield


  dividends per share/market price per share x100
• Earnings per share


  profit for the year / number of shares issued
• Price earnings ratio


  market price per share/earnings per share
• Labour turnover


  (Number of staff leaving / average number of staff employed) x 100
• Absenteeism


  Total days absent in month/ total available working days in the month x100
• Lateness


  (Total number of late arrivals/ Total number of scheduled attendances) X 100