Year 13 Calculations

Question 1

Gearing ratio

Answer 1

Non-current liabilities/ capital employed x 100

Question 2

Return on Capital employed

Answer 2

Operating profit/ capital employed x100

Question 3

Capital employed

Answer 3

Non-current liabilities + total equity

Question 4

Labour productivity

Answer 4

total output (per period of time) / average number of employees x 100

Question 5

Labour turnover

Answer 5

Number of staff leaving in time period / average number of staff in post per time period x 100

Question 6

Labour retention

Answer 6

Number of staff staying per time period / average staff in post in time period x 100

Question 7

Absenteeism

Answer 7

Number of staff absent in a day / total number of staff employed x 100

Question 8

Payback

Answer 8

Number of years to get back initial investment. If part way through the year:
Amount needed / Net cash flow for following year x 12

Question 9

Average rate of return

Answer 9

Annual profit / investment cost x 100

Question 10

Net present value

Answer 10

Each year of cash flow x discount figure.
Add all cash flows up as a total
Total - initial investment cost

Question 11

Three year average

Answer 11

Year 1 + Year 2 + Year 3 = Total
Total / 3 = 3 year average

Year 2 + Year 3 + Year 4 = Total
Total / 3 = 3 year moving average