Equations

• Market Share


  = Sales / Total market sales x 100
• PED


  = % Change in Demand / % Change in Price
• YED


  = % Change in Demand / % Change in Income
• Net Cash Flow


  = Inflows - Outflows
• Sales Revenue


  = Number of units sold x sales price
• Total Costs


  = Fixed costs + Variable costs
• Contribution Per Unit


  = Sales price - Variable cost per unit
• Total Contribution


  = Contribution per unit x Number of units sold
• Break Even


  = Fixed costs / Contribution per unit
• Margin of Safety

  = Actual sales - Break even point
• Variance

  = Actual - Budget
• Gross Profit


  = Revenue - Cost of sales
• Cost of Sales


  = Open stock + Purchases - Closing stock
• Operating Profit


  = Gross Profit - Overheads
• Net Profit


  = Operating Profit - Financial costs
• Profit margin


  = x / Revenue x 100
• Current Ratio


  = Current Assets / Current Liablities
• Acid Test Ratio


  = Current assets - stock / Current Liablities
• Productivity


  = Output / Number of employees
• Capacity Ultilisation 


  Actual Output / Maximum Output x 100
• Average Cost


  = Total Cost / Current Output
• Payback is net cash is constant


  = Sum invested / Net Cash
• Payback is net cash isnt constant


  = Outlay outstanding / Monthly cash in year
• Average Rate of Return


  = Average annual return / initial cost x 100
• Present Value


  = Cash flow x discount factor
• Capital Employed


  = Non current liabalities + Total equity
• Gearing 


  = Non current liablities / Capital employed x 100
• Return on Capital Employed


  = Operating Profit / Capital employed x 100
• Labour Turnover


  = Number of staff leaving / Average number of staff x 100
• Staff Retention


  = Staff not leaving / Average number of staff x 100
• Abstenteeism


  = Total absent hours / possible total x 100
• Foreign Price


  = UK price x Exchange rate
• UK price


  = Foreign price / exchange rate
• Total Variable Cost


  = Number of units sold x Variable cost per unit