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Ib Business Formulas

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1K views3 pages

Ib Business Formulas

Uploaded by

kdo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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IB BUSINESS FORMULAS

Sales of 1 product
Market share= x 100
Total market share

Market growth=Change∈¿ ¿ Original ¿ x 100 ¿ ¿

Change∈sales
Sales growth= x 100
Original sales

Profit=Total revenue−Total costs

Profit using contribution=Total contribution−¿ costs

Total revenue=Selling price x number of units sold

Total costs=¿ costs+Variable costs

Contribution per unit=Selling price per unit−Variable costs per unit

Total contribution=Contribution per unit x Number of units sold

Total contribution=( Price−Variable costs ) x Quantity

¿ costs
Break even quantity=
Contribution per unit

Margin of safety=Current output −Break even output

Total variable costs=Variable cost per unit x Number of units sold

Costs of goods
Sales growth=Selling price−
Services bought

Gross profit =Sales−Cost of sales(variable costs)

Gross profit
Gross profit margin= x 100
Salesrevenue

Operating profit =Sales−Costs of sales−Operating expenses

Operating profit =Gross profit −Overhead expenses

Operating profit
Operating profit margin= x 100
Sales revenue

Net profit
Returnon investment = x 100
Capital invested

Return on investment
Returnon capital employed = x 100
Cost of investment

N umber of staff leaving


Labor turnover= x 100
Average staff
Total value of output
Labor productivity= x 100
Total number of employees

N umber of staff absent on 1 day


Labor absenteeism= x 100
Average staff

Current output
Capital unitilization= x 100
Maximum output

Total costs
Unit costs=
Output

Total labor costs


Labor cost per unit=
Unit of output

% change∈demand
PED=
% change∈ price

Number of issued shares


Market capitalization=
C urrent market price

Profit of the year =Operating profit −(Interest costs+Tax)

Number of employees at the end of period−Number of leavers


Employee retention rate= x 100
Number of employees at end

Operating profit
ROCE= x 100
Equity + Noncurrent liabilities

¿ costs
Break even quantity=
Contribution per unit

Current asset
Current ratio=
Current liabilities

Noncurrent liabilities
Gearing= x 100
Equity+ Non current liabilities

Payables
Payable days= x 365
Co st of sales

Receiv ables
Receivable days= x 365
S ales

Cost of goods sold


Inventory turnover=
Average inventory

(Costs of project∨investment )
Payback=
Annual cash inflows

Annual profit ( Net cash flow)


Average rate of return ( ARR)= x 100
Initial capital cost

Annual profit ( Net cash flow)


Average rate of return ( ARR)= x 100
Average capital cost
Net present value ( NPV )=Net cash flow x Discount factors−Original investment

Average capital cost=¿ ¿

Lower discount rate+ NPV at lower rate


Internal rate of return(IRR)= x ( Higher rate−Lower rate)
PV at lower rate−PV at higher rate

Current assets−Inventories
Acid test ratio=
C urrent liabilities

Output
Capital productivity=
Capital employed

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