Revenue & Costs
TR total revenue, TC total cost, FC fixed cost, VC variable cost.
Revenue = Selling price ร Quantity Total cost = Fixed costs + Variable costs Profit = Revenue โ Total cost Pearson Edexcel International GCSE 4BS1
๐ข Edexcel IGCSE Business Studies Formula Sheet 2025
Finance, marketing, operations, and HR equations structured for Edexcel IGCSE Paper 1 & Paper 2 calculations.
Finance Marketing Operations Human Resources
Master Every Edexcel Business Calculation
This reference brings the quantitative side of your Edexcel Business case studies into one place. Use it to support decision-making questions with accurate ratios and brief contextual explanations.
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Finance ratios with definition cues
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Marketing metrics & elasticity reminders
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Operations efficiency & quality measures
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Labour turnover and productivity analytics
Financial Performance & Break-even
Break-even Analysis
Contribution shows how much each unit contributes toward fixed costs.
Contribution per unit = Selling price โ Variable cost per unit Break-even output = Fixed costs / Contribution per unit Margin of safety = Actual output โ Break-even output Cash Flow
Inflow/outflow expressed per period (usually monthly).
Net cash flow = Total inflows โ Total outflows Closing balance = Opening balance + Net cash flow Profitability & Liquidity Ratios
Profitability
Use figures from income statement (Statement of Profit or Loss).
Gross profit margin (%) = (Gross profit / Revenue) ร 100 Net profit margin (%) = (Net profit / Revenue) ร 100 Return on capital employed (%) = (Operating profit / Capital employed) ร 100 Liquidity
Capital employed = equity + non-current liabilities.
Current ratio = Current assets / Current liabilities Acid-test ratio = (Current assets โ Inventory) / Current liabilities Inventory turnover = Cost of sales / Average inventory Trade Credit Ratios
Averages taken over the same period as credit sales/purchases.
Receivables days = (Trade receivables / Credit sales) ร 365 Payables days = (Trade payables / Credit purchases) ร 365 Marketing & Investment Decisions
Market Metrics
Market size measured by value or volume.
Market share (%) = (Firm's sales / Total market sales) ร 100 Market growth (%) = ((Market size this year โ Market size last year) / Market size last year) ร 100 Pricing & Elasticity
PED sign negative for most goods.
PED = (% ฮ quantity demanded) / (% ฮ price) Mark-up (%) = ((Selling price โ Cost) / Cost) ร 100 Gross margin (%) = ((Selling price โ Cost) / Selling price) ร 100 Investment Appraisal
For payback, count full years then fraction of next year.
Payback period calculated using cumulative cash flow table.
ARR (%) = (Average annual profit / Initial investment) ร 100 Operations & Human Resources
Productivity & Utilisation
Use consistent time units (per hour/per week).
Labour productivity = Output / Number of employees Capacity utilisation (%) = (Actual output / Maximum possible output) ร 100 Quality Metrics
Defect rate (%) = (Defective units / Total units) ร 100 HR Analytics
Average staff employed = (Opening + Closing employees) / 2.
Labour turnover (%) = (Number of staff leaving / Average number employed) ร 100 Absenteeism (%) = (Number of days lost / Total working days available) ร 100 Motivation & Pay (reminder)
Know formula for productivity-related pay and piece rate earnings where applicable.
Link calculations to motivational theories (Taylor, Maslow, Herzberg).
How to Use This Formula Sheet
Boost your Cambridge exam confidence with these proven study strategies from our tutoring experts.
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Lay Out Formula โ Substitution โ Answer
Edexcel mark schemes award method marks if each stage is shown clearly.
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Explain What Ratios Mean
Follow every calculation with a sentence on business performance or stakeholder impact.
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Memorise Common Benchmarks
Remember typical healthy ratios (e.g., current ratio around 1.5:1) for evaluation questions.
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Link to Functional Decisions
Use results to justify marketing, operations, finance, or HR recommendations in 12-mark answers.
Strengthen Your Edexcel Business Answers
Join Tutopiya tutors to practice Edexcel-style case study questions that blend accurate calculations with convincing recommendations.
Formula references follow Pearson Edexcel International GCSE Business (4BS1) specification.
Include currency symbols and time periods when presenting ratio conclusions in exams.