Equations

• Labour productivity


  Output / Number of employees
• Labour turnover (%)


  (Number of staff leaving over period of time/ average number of staff employed over same period of time) x 100
• Labour retention (%)


  (Number of employees remaining over period of time/ average number of employees over same period of time) x 100
• Market share


  (Sales / Total market sales) x 100
• Net cash flow


  Total inflows – Total outflows
• Sales volume


  Total number of units sold over a period of time
• Sales revenue


  Number of units sold x unit price
• Total variable costs


  Number of units sold x variable cost per unit
• Total costs


  Fixed costs + variable costs
• Variance


  Actual – Budget
• Gross profit


  Sales revenue - VC
• Operating profit


  Gross profit - overheads
• Net profit


  Operating Profit +/- finance costs
• Gross profit margin


  (Gross profit / Sales revenue) x 100
• Operating profit margin


  (Operating profit/ Sales revenue) x 100
• Profit for the year (net profit) margin


  (Profit for the year / Sales revenue) x 100
• Productivity (labour)


  Output per period (units)/ Number of employees
• Capacity utilisation


  (Actual level of output/ Maximum possible output) x 100
• Labour productivity


  Output over period of time/ Number of employees
• Labour turnover (%)


  (Number of staff leaving over period of time/ average number of staff employed over same period of time) x 100
• Labour retention (%)


  (Number of employees remaining over period of time/ average number of employees over same period of time) x 100
• Absenteeism (%)


  (Number of staff absent over period of time/ average number of employees over same period of time) x 100