theme 3 equations

payback

amount remaining to recover/ amount recovered in following year x 12

average rate of return

average annual profit/ assets initial cost x 100

discounted cash flow

net cash flow x discount factor

return on capital employed ROCE

operating profit/ capital employed x 100

gearing ratio

non-current liabilities / total equity + non current liabilities x 100

capital employed

total assets - current liabilities OR total equity + non current liabilities

labour productivity

total output per time/ number of employees per time

labour turnover

number of staff leaving in a time/ avg number of staff

labour retention

avg number of staff employeed for 1 yr /avg number of staff

absenteeism

number of staff absent for time/ total number of employees