Quantitative skills in business key terms

percentage change

The change between two values expressed as a percentage of the original value, indicating the relative rise or fall.

Average

The arithmetic mean of a set of numbers, calculated by adding all values and dividing by the count of values.

Profit

The amount remaining after total costs are deducted from revenue.

Net profit margin

The ratio of net profit to revenue, expressed as a percentage.

average rate of return

The percentage of profit earned on an investment relative to the amount invested, expressed as (Net profit ÷ Initial investment) × 100.

Net cash flow

The amount of cash a business will have after all expected cash inflows and outflows have been accounted for, calculated as total revenue minus total costs.

Market share

The proportion of total sales in a market captured by a company, expressed as a percentage.

Profitability ratio

A profitability ratio measures a company's ability to generate earnings relative to sales, assets or equity.

Average rate of return

The average annual profit earned on an investment, expressed as a percentage of the initial investment.

Market share

The proportion of total sales in a market that is captured by a particular company or brand, usually expressed as a percentage.

Fixed cost

A cost that does not change with the level of output in the short run, such as rent or salaries.

Quantitative data

Numerical information that can be measured, counted, or expressed in numbers, such as sales figures, costs, or market shares.