Business formulas ( simplified )
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BTEC level 3 business, personal and business finance
Last updated 2:01 PM on 3/15/26
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13 Terms
1
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Trade receivable days
Trade receivables/ sales x365
2
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Trade payable days
Trade payables/ purchases x365
3
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Inventory turnover
Av Inv/ cost of sales x365
4
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ROCE
NP/CE
5
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Current ratio
CA/CL
6
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Liquid capital ratio
CA- inv / CL
7
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Mark up
GP/ cost of sales x 100
8
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net profit
GP - FC
9
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Costs of goods sold
OI + Purchases - closing inventory
10
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variable cost per unit
TC-FC/ BE quantity
11
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selling price per unit
BE revenue/ BE quantity
12
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margin of safety
expected output - BE quantity
13
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revenue
cost of sales + GP
