Theme 3 Flashcards
1
Q
Gearing
A
non current liabilities/capital employed x 100
2
Q
what gearing should look like
A
-percentage
-above 50, highly geared
3
Q
Capital employed
A
total equity + non current liabilities
4
Q
return on capital employed
A
operating profit/capital employed x 100
5
Q
average rate of return
A
-add up total return
-take away cost of project/net return
-divide by how many years project will run
-divide that by cost x 100
6
Q
labour turnover
A
number of employees that leave in a period of time/total number of employees x 100
7
Q
Absenteeism
A
number of people lost to absent/total number that could be fully achieved x 100
8
Q
cost per unit
A
total costs/quantity produced
9
Q
labour cost per unit
A
total labour costs/quantity produced
10
Q
Pay back period
A
left over costs to be repaid/net cash flow of that year x 12
