AS Business Formulae

Added Value

Price - Total costs

Sales Growth (%)

(Original sales - New sales / Original sales) x 100

Revenue

Selling price x Quantity sold

Market Capitalisation

Current share price x Total number of shares issued

Labour Turnover

(Number of workers who left / Average number of workers) x 100

Time-based Salary

Wage rate x Hours worked

Piece Rates

Units produced x Rate per unit

Commission

Sales revenue x Commission rate

Profit Share

Total profit x Share of profit

Market Share

(Units sold by business / Total market units sold) x 100

Market Growth

(New market size - Original market size / Original market size) x 100

Median Value

(Number of values + 1) / 2

Range

Highest result - Lowest result

Angle of Section in a Pie Chart

(Value of one section / Total value of all sections) x 360

Labour Productivity

Output produced / Number of workers per hour

Capacity Utilisation

(Current capacity / Total capacity) x 100

Profit

Total revenue - Total costs

Working Capital

Current assets - Current liabilities

Opening Cash Flow

Closing cash flow - Net cash flow

Closing Cash Flow

Opening cash flow + Net cash flow

Net Cash Flow

Cash inflow - Cash outflow

Closing Cash Balance

Opening cash balance + (Cash inflows - Cash outflows)

Total Variable Costs

Variable costs per unit x Output

Average Fixed Costs

Total fixed costs / Output

Contribution

Revenue - Total variable costs

Unit Contribution

Price of unit - Direct variable cost of unit

Average Total Cost

Total costs / Output

Marginal Cost

Change in cost / Change in output

Total Cost

Total variable costs + Total fixed costs

Break-even Level of Output

Fixed Costs / (Price - Variable costs per unit)

Production Over Break-Even Point

(Margin of safety / Break-even output) x 100

Margin of Safety

Current level of output - Break-even level of output

Adverse Budget Variance

Actual cost - Budgeted cost

Favourable Budget Variance

Budgeted cost - Actual cost