EQUATIONS Flashcards
Market Capitalisation
Number of Shares Issued
X
Share Price
Market Share
Sales of Business / Total Sales in Market X 100
Price Elasticicity of Demand
% Change in Quantity Demanded / % Change in Price
Labour Productivity
Capacity Utilisation
Output in a given time period / Maximum possible output
X 100
Contribution per unit
Selling Price - Variable Costs per Unit
Break Even
Fixed Costs / Contribution
Margin of Safety
Actual Level of Output - Breakeven Level of Output
Gross Profit Margin
Gross Profit / Revenue X 100
Operating Profit Margin
Operating Profit / Revenue X 100
ROCE
Net Profit / Capital Employed X 100
Labour Turnover
Employee Retention Rate
Number of employees at end of period - number of leavers
(divided by)
Number of employees at end of period
Current Ratio
Current Assets / Current Liabilities
Gearing
Non-current liabilities
(divided by)
Total Equity + Non-current liabilities