Studied by 7 peoplerevenue
Selling price per unit × Number of units sold
total variable costs
Variable cost per unit × Number of units sold
total costs
Fixed costs + Variable costs
profit (2)
Total revenue − Total costs
OR
total contribution - fixed costs
market capitalisation
Number of issued shares × Current share price
EV of 2
(Pay-off of A × probability of A) + (Pay-off of B × probability of B)
net gain
Expected value − Initial cost of decision
market growth
Change in the size of the market over a period /Original size of the market × 100 (%)
market share
Sales of one product OR brand OR business /Total sales in the market × 100 (%)
added value
Sales revenue − costs of bought-in goods and services
labour productivity
Output over a time period / Number of employees
unit/average costs
Total costs / Number of units of output
capacity utilisation
Actual output / Maximum possible output × 100 (%)
return on investment
Profit from the investment (£) / Cost of the investment (£) × 100 (%
gross profit
Revenue − Cost of Sales
operating profit
Gross profit − Operating Expenses
profit for year
Operating profit + Profit from other activities − Net finance costs − Tax
gross profit margin
Gross profit / Revenue × 100 (%)
operating profit margin
Operating profit / Revenue × 100 (%)
profit for year margin
Profit for year / Revenue × 100 (%)
variance
Budgeted figure - actual figure
contribution per unit
Selling price − Variable costs per unit
total contribution (2)
Contribution per unit × Units sold
OR
total revenue - total variable costs
Break even output
Fixed costs / Contribution per unit
margin of safety
Actual level of output − Break-even level of output
labour turnover
Number of staff leaving / Number of staff employed by the business × 100 (%)
employee retention
Number of employees who remained with the business for the whole period of time / of employees at start of the time period ×100 (%)
employee costs as % of turnover
Employee costs / Turnover × 100
labour cost per unit
Labour costs / Units of output
return on capital employed ROCE
Operating profit / Total equity + non-current liabilities × 100
current ratio
Current assets / Current liabilities
gearing
Non-current liabilities / Total equity + non-current liabilities ×100 (%)
payables days
Payables / Cost of sales × 365
receivables days
Receivables / Revenue × 365
inventory turnover
Cost of sales / Average inventories held
average rate of return
Average annual return (£) / Initial cost of project (£) × 100
Note
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