Business Studies Formula

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percentage change
(new-old) / old x 100
1 of 27
current ratio
current assets / current liabilities
2 of 27
acid test ratio
(current assets - inventory) / current liabilities
3 of 27
working capital
current assets - current liabilities
4 of 27
gearing ratio
non-current liabilities / capital employed
x 100
5 of 27
capital employed
non-current liabilities + total equity
6 of 27
total equity
retained earnings + share capital
7 of 27
return on capital employed (ROCE)
operating profit / capital employed x 100
8 of 27
sales quantity
sales revenue / price
9 of 27
sales revenue
quantity x price
10 of 27
price
sales revenue / quantity
11 of 27
total costs
fixed costs + variable costs
12 of 27
total variable costs
variable costs per unit x quantity
13 of 27
costs per unit
total costs / quantity
14 of 27
contribution per unit
selling price - variable cost per unit
15 of 27
total contribution
contribution per unit x quantity
16 of 27
break even point
fixed costs / contribution per unit
17 of 27
margin of safety
max. production per output - break even point
18 of 27
budget
budget - actual
19 of 27
simple profit
total revenue - total costs

or

total contribution - total fixed costs
20 of 27
gross profit
sales revenue - cost of sales
21 of 27
operating profit
gross profit - expenditure
22 of 27
net profit
operating profit - any interest payable + tax
23 of 27
gross profit margin
gross profit / sales revenue x 200
24 of 27
operating profit margin
operating profit / sales revenue x 100
25 of 27
net profit margin
net profit / sales revenue x 100
26 of 27
capacity utilisation
current output / max. output x 100
27 of 27

Other cards in this set

Card 2

Front

current assets / current liabilities

Back

current ratio

Card 3

Front

(current assets - inventory) / current liabilities

Back

Preview of the back of card 3

Card 4

Front

current assets - current liabilities

Back

Preview of the back of card 4

Card 5

Front

non-current liabilities / capital employed
x 100

Back

Preview of the back of card 5
View more cards

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