Studied by 2 peopleMarket share
(Sales of a product or business/ Total market sales) x 100
Market growth
Market size (now) – Market size (old)/ market size (old) x100
Price elasticity of demand
% Change in quantity demanded/ % Change in price
Income elasticity of demand
% Change in quantity demanded/ % Change in income
Net cash flow
Total inflows – Total outflows
Sales volume
The total number of units sold over a specific period.
Sales revenue
total number of units sold over a period of time
Total variable costs
number of units sold x variable cost per unit
Total costs
The sum of fixed costs and variable costs.
Contribution per unit
Fixed costs + variable costs
Total contribution
Selling price per unit – Variable cost per unit
Break-even
Fixed costs/ Contribution per unit
Margin of safety
Actual Sales/Output – Break even output
Variance
Actual – Budget
Gross profit
Sales revenue minus cost of sales
Operating profit
Gross profit minus 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/ current liabilities
Acid test ratio
(Current assets – stock) / current liabilities
Productivity (labour)
Output per period (units)/ Number of employees in that period
Average unit cost
Total costs / total output
Capacity utilisation
(Actual level of output/ Maximum possible output) x 100
Note
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