Math for Managers

Operating profit:

$G\text{-}E={\rm O}$

where: G	=	gross profit
E	=	expenses
O	=	operating profit

Payback ratio:

$I÷C=R$

where: I	=	initial cash investment
C	=	net cash flow per year
R	=	payback ratio

Percent of expense variance:

$V÷{\rm B}=P$

where: V	=	year-to-date variance (favorable or unfavorable)
B	=	year-to-date budget
P	=	percent of expense variance

Percent of the total:

$V÷T=P$

where: V	=	value
T	=	total
P	=	percent of the total

Percentage change:

$\left(N\text{-}O\right)÷{\rm O}=P$

where: N	=	new base value
O	=	old base value
P	=	percentage change

Percentage Conversion to Decimal:

$\begin{array}{l}\text{a})\text{decimal}\text{shift:}\text{r}\text{.0\%=0}\text{.0}rdecimal\\ \text{b})\text{divide}\text{by}\text{100:}r÷100=D\end{array}$