Formulas and Calculations Theme 3 Flashcards
Total capital employed
total equity + non current liabilities
Gearing ratio
non currrent liabilities / totalcapital employed * 100
return on capital emloyed ratio
operating profit / total capital employed * 100
Absenteesim rate
total number absent per period / average number employed per period * 100
Labour turnover
total number of employees leaving per period / average number of employees per period * 100
Labour retention rate
total number of employees remaining per period / average number of employees per period * 100
Centered moving average 3 month
EG centred moving 3 month average febuary = (jan)48k + (feb)57k + (mar) 51k = 156k
feb centred 3 month avergae = 156k/3
= 52k
Payback period
how long it takes to get back the money invested
Average rate of return
average annual profit / investment cost * 100
average annual profit = total returns - investment cost/ project life
Net present value
Total discounted returns - investment cost
