Business A Level Formulas 0.0 / 5 ? Business StudiesFormulasA2/A-levelAQA Created by: annabakerCreated on: 25-05-18 15:42 Labour productivity Output per time period ÷ number of employees 1 of 35 Return on capital employed (%) Operating profit ÷ capital employed x 100 2 of 35 Market share Sales of product/business ÷ total sales in the market 3 of 35 Variable costs Variable costs per unit x number of until sold 4 of 35 Market capitalisation Number of shares issued x current share price 5 of 35 Average rate of return Net return from project/number of years ÷ initial cost of the project x 100 6 of 35 Contribution per unit Selling price per unit - variable cost per unit 7 of 35 Total contribution Contribution per unit (selling price per unit - variable costs her unit) x number of units sold 8 of 35 Labour turnover Number of staff leaving during the year ÷ average number of staff employed by the business during the year 9 of 35 Gearing Non current liabilities ÷ capital employed x 100 10 of 35 Payables Payables ÷ cost of sales x 365 11 of 35 Receivables Receivables ÷ sales revenue x 365 12 of 35 Operating profit margin Operating profit ÷ sales revenue x 100 13 of 35 Gross profit margin Gross profit ÷ sales revenue x 100 14 of 35 Capacity utilisation Actual output ÷ maximum possible output x 100 15 of 35 Return on investment Return on investment ÷ cost of investment x 100 16 of 35 Unit costs Total costs of production ÷ number of units of output produced 17 of 35 Margin of safety Actual level of output ÷ breakeven level of output 18 of 35 Added value Sales revenue - costs of goods and services 19 of 35 Operating profit sales revenue - cost of sales - operating expenses 20 of 35 Profit Total sales revenue - total costs 21 of 35 Total costs Fixed costs + variable costs 22 of 35 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 23 of 35 Current ratio Current assets ÷ current liabilities 24 of 35 Acid test ratio Current assets - stock ÷ current liabilities 25 of 35 Inventory turnover Cost of goods sold ÷ average inventories held 26 of 35 Net gain (decision trees) Expected value - initial cost of decision 27 of 35 Price elasticity of demand % change in quantity demand ÷ % change in price 28 of 35 Price inelastic demand coefficient 0 to -1 29 of 35 Price elastic demand coefficient -1 to infinity 30 of 35 Profit for the year Operating profit + profit from other activities - net finance costs - tax 31 of 35 Break even output Fixed costs ÷ contribution per unit 32 of 35 Employee costs as a percentage of turnover Employee costs ÷ sales turnover x 100 33 of 35 Labour costs per unit Labour costs ÷ units of output 34 of 35 Capital employed Total equity + non-current liabilities 35 of 35
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