formula

• total revenue

  sales price x units sold
• total costs

  variable costs + fixed costs
• profit

  revenue - costs
• labour productivity

  output / number of employees x 100
• unit cost

  total costs / no. units of output
• capacity utilisation

  actual output / max output x 100
• PED

  Percentage change in quantity demanded / percentage change in price
• Value added

  Price - cost of inputs
• YED

  Percentage change in quantity demanded / percentage change in income
• Labour productivity

  Output in a time period / number of employees
• Return on capital employed

  Operating profit / capacity employed x 100
• Return on investment

  Net profit / investment x 100
• variable costs

  variable costs per unit x number of units sold
• market capitalisation

  number of issues share x current share price
• market growth

  change in market size / original market size x 100
• market share

  your business sales / total market sales x 100
• return on investment %

  profit from investment / cost of investment x 100
• gross profit

  revenue - cost of sales
• operating profit

  gross profit - overheads
• net profit

  operating profit - tax - expenses + profit from other activities
• gross profit margin

  gross profit / revenue x 100
• operating profit margin

  operating profit / revenue x 100
• net profit margin

  net profit / revenue x 100
• contribution per unit

  selling price - variable costs per unit
• total contribution

  contribution per unit x unit sold
• break even output

  fixed costs / contribution per unit
• margin of safety

  actual output - break even output
• labour turnover

  number of staff left / number of staff employed x 100
• average rate of return

  average annual return / initial cost of project x 100
• liquidity current ratio

  current assets / current liabilities : 1
• liquidity acid test

  current assets - stock / current liabilities : 1
• Current assets = inventories + receivables + cash + cash equivalents
• Working capital (net current assets) = current assets - current liabilities
• Net assets =all assets -all liabilities
• Total equity = share capital + reserves
• Capital employed = total equity + non current liabilities