BUSINESS AS LEVEL FORMULAS
Market Capitalization: current share price x total shares issued
Market Share: total sales of the business / total sales of industry x 100
Labour Turnover: number of leaving employee in a year / avg. number of
workers employed x 100
Break Even Level of Production: fixed cost / contribution per a unit
Contribution per a unit: selling price – variable cost per unit
Profitability Ratio
Gross Profit Margin: gross profit / revenue x 100
Operating Profit Margin: operating profit / revenue x 100
Liquidity Ratio
Current Ratio: current assets / current liabilities
Liquid Assets: current assets - inventories (stocks)
Acid Test Ratio: liquid asset / current liabilities
PED
PED: % change in quantity demanded / percentage change in price
PRODUCTIVITY
Labour Productivity: total output in a given time period / total workers
employed
Capital productivity: output / capital employed
Market Capitalization: current share price x total shares issued
Market Share: total sales of the business / total sales of industry x 100
Labour Turnover: number of leaving employee in a year / avg. number of
workers employed x 100
Break Even Level of Production: fixed cost / contribution per a unit
Contribution per a unit: selling price – variable cost per unit
Profitability Ratio
Gross Profit Margin: gross profit / revenue x 100
Operating Profit Margin: operating profit / revenue x 100
Liquidity Ratio
Current Ratio: current assets / current liabilities
Liquid Assets: current assets - inventories (stocks)
Acid Test Ratio: liquid asset / current liabilities
PED
PED: % change in quantity demanded / percentage change in price
PRODUCTIVITY
Labour Productivity: total output in a given time period / total workers
employed
Capital productivity: output / capital employed
