Business Formulas Flashcards
1
Q
Index Numbers
A
Value in period
—————————— x100
Value in base period
2
Q
Percentage Change
A
Difference
————— x 100
Original
3
Q
Price Elasticity of Demand
A
% change in price
4
Q
Price Elasticity of Income
A
% change in income
5
Q
3 month moving average
A
3
6
Q
Working Capital
A
Current Assets - Current Liabilities
7
Q
Shareholders Capital/Funds
A
Share Capital + Reserves
8
Q
Net Assets
A
Fixed Assets + Current assets - (current liabilities + long term liabilities)
9
Q
Capital Employed
A
Shareholder Funds + Long Term Liabilities
10
Q
Current Ratio
A
Current Liabilities
11
Q
Acid Test
A
Current Liabilities
12
Q
Gearing
A
Long Term Liabilities/
Capital Employed
13
Q
Return on Capital Employed
A
Net Profit Before Tax
——————————- x100
Capital Employed
14
Q
Gross Profit Margin
A
Gross Profit
——————— x100
Sales Revenue
15
Q
Net Profit Margin
A
Net Profit
——————— x100
Sales Revenue
