Business Calculations

• PEoD


  % change in quantity demanded / % change in price
• IEoD


  % change in quantity demanded / % change in income
• Net Assests


  Current Liabilities + Non-current Liabilities
• Working Capital


  current assets - current liabilities
• Depreciation


  (Historic Cost - Residual Value) / Useful Life of Asset
• ROCE


  Net profit / capital employed x 100
• Capital Employed


  Shareholder's funds + long term liabilities
• Gearing


  Long term liabilities / capital employed x 100
• Current Ratio


  current assets / current liabilities
• Acid Test


  (Current Assets - Stock) / Current Liabilities
• ARR


  Average Annual Profit / Investment x 100
• Net Present Value


  net cash flow x discount factor