Formulas

• Revenue

  Number of units sold x Unit price
• Total costs

  Fixed costs + Total Variable costs
• Total variable costs

  Number of units sold x variable costs per unit
• Contribution per unit

  Selling price per unit - Variable cost per unit
• Total contribution

  Contribution per unit x Number of units sold
• Profit

  Total revenue - Total costs
• Profit

  Total contribution - Fixed costs
• Break-even

  Fixed costs/ Contribution per unit
• Gross profit margin

  Gross profit / Sales revenue x 100
• Operating profit margin

  Operating profit/ Sales revenue x 100
• Profit for the year margin

  Profit for the year/ Sales revenue x 100
• Capacity utilisation

  Actual level of output/ Maximum possible output x 100
• Productivity (labour)

  Output per period (units)/ Number of employees
• Market share

  Sales of a product or business/ Total market sales x 100
• Price elasticity of demand

  % Change in quantity demanded/ % Change in price
• Income elasticity of demand

  % Change in quantity demanded/ % Change in income
• Market Capitalisation

  number of shares issued * share price
• Net Gain

  Expected Value - Initial Cost
• Sales Growth as %

  (sales in year 1 - sales in year 0) / sales in year 0 *100
• Return on Investment %

  return on investment / cost of investment * 100
• Gross Profit

  Revenue - Cost of Goods Sold
• Operating Profit

  Gross Profit - Expenses
• Labour Turnover

  leavers in year/ average staff in post *100
• Employee retention

  staff with more than 1 year service / average staff in post *100
• Current ratio

  current assets/ current liabilities
• Gearing %

  non-current liabilities / total equity + LT liabilities *100
• Trade Payable Turnover

  Trade payables / Credit Purchases * 365
• Trade Receivables Turnover

  Trade receivables / Credit Sales *365
• Inventory turnover

  cost of goods sold / average inventories
• ROCE

  operating profit / total equity + LT liabilities *100
• Labour cost per unit


  total costs / units of output
• Average rate of return

  (net return / number of years) / initial cost *100