Theme 3 - Equations Flashcards
1
Q
Simple payback period
A
Number invested/net cash flow
2
Q
Average annual return
A
Total profit of investment/num of years invested
3
Q
Net present value
A
Discount factor x cash flow
4
Q
Working capital
A
Current assets - current liabilities
5
Q
Net assets
A
Non current assets + working capital - non current liabilities
6
Q
Total equity
A
Share capital + retained profit + other reserves
7
Q
Assets employed
A
Non current assets + net current assets
8
Q
Capital employed
A
Non current assets + working capital
9
Q
Gearing ratio
A
Non current liabilities/capital employed x 100
10
Q
ROCE
A
Operating profit / capital employed x 100
