business calculations

PED

% change in quantity/ % change in price

YED

% change in quantity/ % change in income

profits

gross profit = revenue - cost of sales

operating profit = gross profit - operating costs

net profit= gross profit- financial costs

labour productivity

output/ employees

employee retention

amount staying/ amount total x 100

labour turnover

leave/ total x 100

revenue

price x quantity

total cost

variable + fixed costs

profit

revenue - total costs

contribution

selling price- variable costs

break even output

fixed costs/ contribution

margin of safety

actual- break even

profit margins (gross, operating, retained)

profit/ revenue x 100

current ratios

current assets/ current liabilities

acid test ratio

current assets- stock/ current liabilities

capacity utilisation

output/ max capacity x 100

payback

amount remaining to pay back / following years cash flow x12

first positive cumulative cash flow denotes payback

APR

(total net profit/ no of years)/ initial cost x 100

NPV

cash flow x discounted factors then add them all up

decision trees

expected values= probability x outcome

net gain= expected value - cost

critical path

float= LFT- duration - EST

unit labour costs

labour costs/ output

stock control/ reorder level

lead time demand + buffer stock

exchange rates

If £ strengthens: Exports more expensive, imports cheaper.
If £ weakens: Exports cheaper, imports more expensive.

gearing ratio

non current liabilities/ non current liabilities+ equity x 100

return on capital employed

operating profit/ capital employed x 100

capital employed

total equity + non current liabilities

total equity

total assets - total liabilities

absenteeism

no of days off/ total number of days x 100