Business Formulas Flashcards
Market share (%)
Sales
______________ X100
Total market size
Price elasticity of demand
% change in quantity demanded
___________________________________
% change in price
Income elasticity of demand
% change in quantity demanded
___________________________________
% change in real income
Capacity utilisation (%)
Output
_________ X100
Capacity
Unit cost
Total costs
____________
Units output (average cost)
Labour productivity
Output per period
____________________
Number of employees
Return on investment (%)
Return on investment (£)
___________________________ X100
Cost of investment (£)
Gross profit
Sales revenue - cost of sales
Operating profit
SR - cost of sales - operating expenses
Profit of the year
Operating profit + other profit - net finance costs - tax
Profit margin
Profit
________ X100
SR
Contribution per unit
Selling price per unit - VC per unit
Total contribution
TR - TVC or
Contribution per unit X units sold
Break even
Fixed costs
_____________
SP - VC or (contribution per unit)
Labour cost per unit
Labour costs
______________
Units of output
Employee costs as a % of turnover
Employee costs
______________ X100
Sales turnover
Labour turnover (%)
Number of staff leaving
__________________________ X100
Average number of staff employed
Labour retention (%)
Number of staff employed at end of period - number of leavers
____________________________ X100
Number of staff employed at end of period
Cash flow
Total inflows
All up all cash RECEIVED
Cash flow
Total outflows
Add up all PAYMENTS made
Cash flow
Net cash flow
Total inflow - total outflow
Cash flow
Opening balance
Amount of cash at the start of the month (carried on from last months ending money)
Cash flow
Closing balance
Net cash flow + opening balance
