Business Formulas

All of the formulas mentioned within the WJEC specification (will add more at some point)

Market Share

Sales / Sales of Market x 100

ROCE (Return on Capital Employed)

Operating Profit / (Total Equity + Non-current liabilities) x 100

Break Even

Fixed Costs / Contribution per Unit

Contribution per Unit

Selling Price - Variable cost per unit

Total Contribution

Contribution per unit x quantity sold

Sales Revenue

Price x Quantity

Margin of Safety

Actual Sales - Break Even Sales

Total Costs

Fixed Costs + Variable Costs

Gross Profit

Sales - Cost of Sales

Net Profit

Gross Profit - Expenses

Gross Profit Margin (GPM)

Gross Profit / Sales Revenue x 100

Net Profit Margin (NPM)

Net Profit / Sales Revenue x 100

Absenteeism

Number of Employees Absent / Total Number of Employees x 100

Labour Productivity

Total Output / Number of Employees

Labour Turnover

Number of Staff Leaving / Total Number of Staff x 100

Acid Test Ratio

(Current Assets - Stock) / Current Liabilities

Gearing Ratio

Long-Term liabilities / Capital Employed x 100

Working Capital

Current Assests - Current Liabilities

Capital Employed

Total Assets - Current Liabilities