Equations Flashcards
Labour Productivity
Output per period divided No of employees at work
Absenteeism
Number of staff absent/
total number of staff X100
Labour Turnover
Number of staff leaving per year over Average number of staff x 100
Capacity Utilisation
Current Output over maximum output x 100
Return on capital employed (ROCE)
Operating profit/capital employed x100
The higher the better
Asset turnover
Revenue/net assets
Stock turnover
Cost of sales/average stock held
Debtor days
Trade debtors/revenuex365
Creditor days
Trade payables/cost of sales x 100
Current ratio
Current assets/current liabilities
Acid test rario
Current assets-stocks/current liabilities
Gearing Ratio
Long current liabilities/Capital employed x 100
Looks at long term finances of business and where it comes from over 50% high geared (loans) lower low geared comes from personal finance
Dividend per share
Total dividends paid/Number of ordinary shares in an issue
ARR
Total net profit / No of years divided by initial cost X 100
