Quantitative skills in business revision notes

The difference between two values expressed as a percentage of the original value.

The average, or mean, is the total of a set of figures divided by the number of figures. It represents a typical value for a data set.

Total income from sales of goods or services before any costs are deducted.

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

The average rate of return is the percentage of profit earned on an investment relative to the amount invested, calculated as (Net profit ÷ Initial investment) × 100.

A projection of the cash that a business expects to receive and spend over a future period, usually expressed in monetary terms.

A line graph displays data points connected by straight lines, useful for showing changes over time.

Gross profit margin is the ratio of gross profit to revenue, expressed as a percentage.

A cash flow forecast predicts the timing and amount of cash inflows and outflows over a future period, helping a business plan for liquidity needs.

Market research is the systematic collection, analysis and interpretation of data about a market, about a product or service to be offered for sale in that market, and about the consumers or customers for that product or service.

The proportion of total sales in a market that a particular firm achieves, expressed as a percentage.

Providing evidence or reasoning to support a decision.