formulas unit 3 Flashcards
1
Q
gearing ratio
A
non-current liabilities/capital employed (total assets-current liabilities) x 100
2
Q
working capital
A
current assets-current liabilities
3
Q
ROCE
A
operating profit/capital employed x100
4
Q
simple payback
A
initial outlay/net cash flow
5
Q
ARR
A
average annual return (total profit/number of yeas)/initial outlay x100
6
Q
Net present value
A
initial outlay + total discounted cash flow
7
Q
Shareholder’s equity
A
total assets-total liabilities (net assets)
8
Q
expected monetary value
A
(expected profit x probability of success) + (expected loss x probability of failure)
