formulas Flashcards
Market share:
sales of a business/ total sales in a market x 100
Price elasticity of demand?
% change in quantity demanded / % change in price x 100
Percent change :
new - old / old
Income elasticity of demand?
% change in quantity demanded / % change in income
breakeven
total fixed costs / contribution per unit
contribution
selling price - variable cost per unit
total contribution
contribution per unit x no of units sold
margin of safety
total output - breakeven point
gross profit
sales revenue - cost of sales
gp margin
gross profit / sales revenue x 100
operating profit
gross profit - expenses
op margin
operating profit / sales revenue x 100
working capital
current assets - current liabilities
productivity
output per time period / input per time period
sales volume
sales revenue / price
sales revenue
price x quantity
total costs
FC + VC
total variable
total - fixed
or
average variable x output
profit
total revenue - total costs
net profit
operating profit - interest
np margin
np / sales revenue x 100
current ratio
current assets / current liabilities
acid test ratio
current assets - stock / current liabilities
capital productivity
output per time / no of machines
labour productivity
output per time period / no of worker/ hours worked
moving averages
- moving total
adding together sales figures for a specific number of periods
- centred average
divide moving total by no of periods
payback period
initial outlay / cash flow = yr and month
arr
arr / initial outlay x 100
gearing
Non-current liabilities/ Total equity + non-current liabilities ×100
roce
Operating profit / Total equity + non-current liabilities × 100
