Business Calculations

% change

((new - old)/old)) x100

sales revenue

selling price x quantity sold

total costs

fixed costs + total variable costs

variable cost per unit

total variable costs / quantity

contribution per unit

selling price - variable cost per unit

total contribution

contribution per unit x quantity sold

break-even point

fixed costs / contribution per unit

profit

total revenue - total costs

profit margin

profit/revenue x100

net cash flow

cash inflows - cash outflows

closing balance

opening balance + net cash flow

opening balance

same as closing balance

market growth

change in size/original size x100

market share

sales of product / total market sales x100

PED

%change in quantity demanded / % change in price

YED

% change in quantity demanded / % change in income

labour turnover

number of staff leaving / average number of staff x100

labour productivity

output / number of employeesabs

absenteeism rate

number of staff absent / total number of staff x100

capacity utilisation

actual output / maximum output x100

operating profit margin

operating profit / sales revenue x100

ROCE

operating profit / capital employed x100

current ratio

current assets / current liabilities

acid test ratio

(current assets - inventory) / current liabilities

gearing ratio

non-current liabilities / capital employed x100

capital employed

total equity + non-current liabilities

labour cost per unit

total labour costs / total output

variance

actual figure - budgeted figure

margin of safety

actual output - break-even output

4 period moving average

used to calculate trends in sales forecasting by finding the average of 4 sets of datat

taxation

profit x tax rate