Theme 3 Calculations Flashcards
Simple payback
Amount needed
———————— x100
Next years cashflow
Average rate of return
Profit per annum
———————-x100
Investment costs
Net present value
Value of future income from an investment project - cost
Expected values (decision trees)
Probability x result
Net gain (decision trees)
Total values - investment costs
Float
Latest finish time - duration - earliest start time
Return on capital employed
Operating profit
——————— x100
Capital employed
Gearing ratio
Non current liabilities
——————————x100
Capital employed
Capital employed
Non current liabilities + total equity
Labour productivity
Total output per time period
—————————————
Number of employees at work
Labour turnover and retention
Number of staff leaving in a year
———————————————
Average number of staff
Absenteeism
Number of staff absent for a time
————————————————
Total employees
