Business formulas (Theme 3) Flashcards
What’s the formula for moving average?
E.g. 3 year moving average = year1 + year2 + year3 / 3
What’s the formula for payback period?
net cash flow + (amount required / net cash flow for that year) x 12
What’s the formula for average rate of return?
Net return per annum / initial cost x 100
What’s the formula for net present value?
present values - initial cost
What’s the formula for gearing ratio?
non current liabilities / capital employed x 100
What’s the formula for return on capital employed (ROCE)?
Operating profit / capital employed x 100
What’s the formula for labour turnover?
Number of staff leaving / average number of staff x 100
What’s the formula for labour retention?
number of staff staying / average number of staff x 100
What’s the formula for absenteeism?
number of staff absent on a day / average number of staff x 100
