47 terms

Just noted down the formulas given in the whole AS Level book. :)

Market Capitalization.

= current share price x tot. no. of shares issued

Market share.

% of sales in the total market sold by a business.

= (tot. sales of bus. / tot. sales of industry) x 100

OR

= (firm's sales in time period / tot. market sales in time period) x 100

= (tot. sales of bus. / tot. sales of industry) x 100

OR

= (firm's sales in time period / tot. market sales in time period) x 100

Equilibrium price.

demand = supply

Mean.

Sum of all results / no. of results

Ex: table - 2,3,5,7,2,6

Sum = 25

No. of results = 6

25 / 6 = 4.16

Ex: table - 2,3,5,7,2,6

Sum = 25

No. of results = 6

25 / 6 = 4.16

Mode.

The value that occurs the most frequently

ex: 2,3,6,2,5,7,9,2,3,1

In this case...the repetitive value is 2.

ex: 2,3,6,2,5,7,9,2,3,1

In this case...the repetitive value is 2.

Median.

1stly, always put the values in ascending (AO)/descending (DO) order!

Ex: Odd No. of values given (put in AO)

= (No. of values + 1) / 2

2,5,6,1,5,7,8,2,7,9,10,4,3,4,3 (15 values)

--> 1,2,2,3,3,4,4,5,5,6,7,7,8,9,10 = (15+1) / 2 = 8

The median value is 8th value. = 5

Ex: Even No. of values (Put in AO)

= No. of values / 2

3,6,7,5,10,3,8,4,1,6,1,9,4,2 (14 Values)

--> 1,1,2,3,3,4,4,5,6,6,7,8,9,10 = 14 / 2 = 7

the median value is the 7th value = 4

Ex: Odd No. of values given (put in AO)

= (No. of values + 1) / 2

2,5,6,1,5,7,8,2,7,9,10,4,3,4,3 (15 values)

--> 1,2,2,3,3,4,4,5,5,6,7,7,8,9,10 = (15+1) / 2 = 8

The median value is 8th value. = 5

Ex: Even No. of values (Put in AO)

= No. of values / 2

3,6,7,5,10,3,8,4,1,6,1,9,4,2 (14 Values)

--> 1,1,2,3,3,4,4,5,6,6,7,8,9,10 = 14 / 2 = 7

the median value is the 7th value = 4

Price elasticity of demand (PED).

= % change in quantity demanded / % change in price.

Ex:

% Change in demand = 10

% Change in price = 25

PED = 10 / 25 = 0.4q

Ex:

% Change in demand = 10

% Change in price = 25

PED = 10 / 25 = 0.4q

(A LvL) Labor productivity.

Output per worker in a given time period.

= Tot. output in time period (ex, 1 year) / Tot. staff employed.

= Tot. output in time period (ex, 1 year) / Tot. staff employed.

(A LvL) Absenteeism.

% of workforce absence as a portion of the employee total.

= (No. of staff absent / Tot. no. of staff) x 100

= (No. of staff absent / Tot. no. of staff) x 100

(A LvL) Labor turnover.

% of employees leaving the organization/business in a given time period.

= (No. of staff leaving in 1 year) / Average No. of staff employed) * 100

= (No. of staff leaving in 1 year) / Average No. of staff employed) * 100

(A LvL) Income elasticity of demand.

The responsiveness of demand for a product followed by a change in consumer incomes.

= % Change in demand for product / % Change in consumer incomes

= % Change in demand for product / % Change in consumer incomes

(A LvL) Promotional elasticity of demand.

The responsiveness of demand for a product followed by a change on spent amount promoting it.

= % Change in demand for product / % Change in promotional spending

= % Change in demand for product / % Change in promotional spending

(A LvL) Cross elasticity of demand.

The responsiveness of demand for a product followed by a change in the price of another product.

= % Change in demand for product A / % Change in demand for product B

= % Change in demand for product A / % Change in demand for product B

(A LvL) Capacity utilization.

The rate of maximum output capacity being achieved.

= (Current output lvl / max. output lvl) x 100

= (Current output lvl / max. output lvl) x 100

Contribution per unit.

= Selling price (SP) - variable cost per unit

Break-even lvl of output.

= Fixed costs / contribution per unit

(A LvL) Unit Cost.

= Tot. cost of production / No. of units produced

Sales revenue/sales turnover (SR/ST).

= Selling price x quantity sold

Gross profit (GP).

= Sales revenue (SR) - cost of sales (CoS)

Net profit (NP).

= GP - Overheads

Pre-tax profits (Profit before tax).

= NP - Interest

Profit after tax.

= Pre-tax profits - Tax

Retained profits (RP).

= Profit after tax - Dividends.

Gross profit margin.

= (GP / SR) x 100

Net profit margin.

= (NP / SR) x 100

Current ratio.

= Current assets / Current liabilities

Liquid assests.

= Current assets - Inventories/Stocks

Acid-test ratio.

= Liquid assets / Current liabilities

(A LvL) Straight-line depreciation.

= (Original costs of assets - Expected residual value) / Expected useful life of asset (years)

(A LvL) Capital employed.

= [(Non-current assets + current assets) - Current **OR** Non-current liabilities] + Shareholder's equity

(A LvL) Return on capital employed (%).

= (NP or operation profit / Capital employed) x 100

(A LvL) Inventory (stock) turnover ratio.

= CoG sold / Value of inventories

(A LvL) Day's sales in receivables ratio.

= Accounts receivable x 365 / SR

(A LvL) Account's receivable turnover ratio.

= SR / Trade receivables

(A LvL) Dividend per share.

= Tot. annual dividends / Tot. No. of issued shares

(A LvL) Dividend yield ratio (%).

= (Dividend per share x 100) / Current share price

(A LvL) Dividend cover ratio.

= Profit after tax and interest / annual dividends

(A LvL) Earnings per share.

= Profit after tax / Tot. No. of shares

(A LvL) Price/Earnings ratio.

= Current share price / Earnings per share

(A LvL) Gearing ratio.

= (Long-term loans / Capital employed) x 100

OR

= (Non-current liabilities x 100) / (Shareholder's equity + Non-current liabilities.

OR

= (Non-current liabilities x 100) / (Shareholder's equity + Non-current liabilities.

(A LvL) Interest cover.

= Operating profit (Before tax & interest) / Paid annual interest

(A LvL) Annual forecast net cash flow.

= Forecast cash inflow - Forecast cash outflow

(A LvL) Payback period.

= (Additional net cash inflow NEEDED / Annual cash flow in the 1st positive cash flow year) x 12 (for months) OR 365 (for days)

(A LvL) Average rate of return (ARR).

= (Annual profit (Net cash flow) / Initial capital cost) * 100

There are 4 stages to calculate this...REMEMBER!

1. Add up all POSITIVE cash flows

2. Subtract INITIAL cost of investment

3. Divide it by lifespan

4. Multiply by 100 for %

There are 4 stages to calculate this...REMEMBER!

1. Add up all POSITIVE cash flows

2. Subtract INITIAL cost of investment

3. Divide it by lifespan

4. Multiply by 100 for %

(A LvL) Discounted cash flow (DCF).

I'm still having difficulty understanding or GETTING this formula, it would be very helpful if anyone would put up a simple formula for this in discussions! :(

(A LvL) Net present value (NPV).

= [(Net cash flow x Discount factors) + Discounted cash flows] - Capital costs

(A LvL) Initial rate of return (IRR)

Used mostly on spreadsheet software.

Graph wise...need to research more. :/ Sorry.

Graph wise...need to research more. :/ Sorry.