Business A Level Formulas

  • Created by: annabaker
  • Created on: 25-05-18 15:42
Labour productivity
Output per time period ÷ number of employees
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Return on capital employed (%)
Operating profit ÷ capital employed x 100
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Market share
Sales of product/business ÷ total sales in the market
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Variable costs
Variable costs per unit x number of until sold
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Market capitalisation
Number of shares issued x current share price
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Average rate of return
Net return from project/number of years ÷ initial cost of the project x 100
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Contribution per unit
Selling price per unit - variable cost per unit
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Total contribution
Contribution per unit (selling price per unit - variable costs her unit) x number of units sold
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Labour turnover
Number of staff leaving during the year ÷ average number of staff employed by the business during the year
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Gearing
Non current liabilities ÷ capital employed x 100
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Payables
Payables ÷ cost of sales x 365
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Receivables
Receivables ÷ sales revenue x 365
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Operating profit margin
Operating profit ÷ sales revenue x 100
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Gross profit margin
Gross profit ÷ sales revenue x 100
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Capacity utilisation
Actual output ÷ maximum possible output x 100
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Return on investment
Return on investment ÷ cost of investment x 100
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Unit costs
Total costs of production ÷ number of units of output produced
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Margin of safety
Actual level of output ÷ breakeven level of output
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Added value
Sales revenue - costs of goods and services
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Operating profit
sales revenue - cost of sales - operating expenses
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Profit
Total sales revenue - total costs
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Total costs
Fixed costs + variable costs
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Employee retention rate
Number of employees at the end of the period - number of employees that left ÷ number of employees at the end of the period
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Current ratio
Current assets ÷ current liabilities
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Acid test ratio
Current assets - stock ÷ current liabilities
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Inventory turnover
Cost of goods sold ÷ average inventories held
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Net gain (decision trees)
Expected value - initial cost of decision
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Price elasticity of demand
% change in quantity demand ÷ % change in price
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Price inelastic demand coefficient
0 to -1
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Price elastic demand coefficient
-1 to infinity
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Profit for the year
Operating profit + profit from other activities - net finance costs - tax
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Break even output
Fixed costs ÷ contribution per unit
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Employee costs as a percentage of turnover
Employee costs ÷ sales turnover x 100
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Labour costs per unit
Labour costs ÷ units of output
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Capital employed
Total equity + non-current liabilities
35 of 35

Other cards in this set

Card 2

Front

Return on capital employed (%)

Back

Operating profit ÷ capital employed x 100

Card 3

Front

Market share

Back

Preview of the front of card 3

Card 4

Front

Variable costs

Back

Preview of the front of card 4

Card 5

Front

Market capitalisation

Back

Preview of the front of card 5
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