Maths Formulas Flashcards
Gross Profit Margin
(gross profit/revenue) x 100
Gross Profit
revenue - cost of sales (vc)
Operating Profit
revenue - other operating expenses (fc)
Net Profit
revenue - all costs (inc. interest)
Current Ratio
current assets/current liabilities
Acid Test Ratio
(current assets-inventory)/current liabilities
Total Equity
Total assets - total liabilities
Price Elasticity of Demand
(Percentage change in quantity demanded/Percentage change in price
Income Elasticity of Demand
Percentage change in quantity demanded/
Percentage change in income
Contribution
Price per unit - unit costs
Break Even
Fixed costs/contribution
Labour turnover
(Number of staff leaving during the year/
Number of staff employed by the business during the year) x 100
Margin of Safety
Actual level of output - Breakeven level of output
ROCE
(Operating Profit/Capital Employed) x 100
Capital Employed
Non current liabilities - total equity
Gearing ratio
(Non current liabilities/capital employed) x 100
Market share
(sales of one business or product/total sales in the market) x 100
ARR
Net return from project or number of years/
Initial cost of project
