Equations Flashcards
What is the equation for market capitalisation?
Cost per share x Number of shares
Income elasticity of demand equation
%change in QD / % change in income
Price elasticity of demand equation
%age change in qd %age change in price
Gross profit equation
Revenue - Direct costs
Operating profit equation?
Gross profit - Indirect cost
Net profit equation?
Operating - remaining costs
What is average cost?
total cost / level of production
What is market share equations?
company sales / total sales x 100
What is the gearing ratio equation?
non- current liabilities / capital employed x 100
What is the return on investment equation?
operating profit / capital invested x 100
What is the contribution equation?
selling price - variable cost
What is the break even equation?
Fixed costs/ contribution
What is the total contribution equation?
contribution x output
What is the market share value equation?
Total revenue / total market value
What is the ROCE (return on capital employed)?
Operating profit/ capital employed x 100
