Business Paper 2 Formulas Flashcards

1
Q

Return on capital employed

A

(Operating profit/ total equity) + non current liabilities x 100

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2
Q

Average costs per unit

A

Total production costs/ total output

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3
Q

Average rate of return

A

Net return/ start costs x 100

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4
Q

Gearing

A

Non current liabilities/ (total equity + non current liabilities) x 100

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5
Q

Total float time

A

Lft- est - duration

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6
Q

Capital emplyed

A

Total assets - current liabilities

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