formulas

• Market share = (Sales of a product or business/Total market sales) x100
• Price elasticity of demand = %Change in quantity demanded/%Change in price
• Income price elasticity = %Change in quantity demanded/ %Change in income
• Net cash flow = Total inflows - Total outflows
• Sales volume = Total number of units sold over a period of time
• Sales revenue = Number of units sold x Unit price
• Total variable costs = Number of units sold x Variable cost per unit
• Total costs = Fixed costs + Variable costs
• Contribution per unit = Selling price per unit - Variable cost per unit
• Total contribution = Contribution per unit x Quantity sold
• Break-even = Fixed costs/Contribution per unit
• Variance = Actual - Budget
• Gross profit = Sales revenue - Cost of sales
• Operating profit = Gross profit - Overheads
• Net profit = Operating profit - Finance costs
• Gross profit margin = (Gross profit/Sales revenue) x 100
• Operating profit margin = (Operating profit/Sales revenue) x 100
• Profit for the year (net profit) margin = (Profit for the year/ Sales revenue) x 100
• Current ratio = (Current assets - stock) / Current liabilities
• Productivity (labour) = Output per period (units)/ Number of employees
• Capacity utilisation = (Actual level of output/Maximum possible output) x 100
• ARR(%) = (Net return from project(£)/Number of years)/ Initial cost of project x 100
• Gearing (%) = Non-current liabilities/Capital employed x 100
• ROCE (%) = Operating profit / Capital employed x 100
• Labour productivity - Output over a period of time / Number of employees
• Labour turnover (%) = (Number of staff leaving over period of time/Average number of staff employed over same period of time) x 100
• Labout retention (%) = (Number of employees remaining over period of time/Average number of employees over same period of time) x 100
• Absenteeism (%) = (Number of staff absent over period of time/Average number of employees over same period of time) x 100