Equations

Question 1

AAR

Answer 1

(Net return from projects(£)/
Number of years)/
Initial cost of investment x 100 = %

Question 2

Gearing

Answer 2

Non-current liabilities/
capital emplyed x100 = %

Question 3

ROCE

Answer 3

Operating profit/
capital employed x100 = %

Question 4

Labour productivity

Answer 4

Output over period of time/
number of employees

Question 5

Labour turnover

Answer 5

(Number of staff leaving over a period/
Average no. of staff employed over the same period) x100 = %

Question 6

Labour retention

Answer 6

(Number of employees remaining over a period/
Average number of employees over same period) x 100 = %

Question 7

Absenteeism

Answer 7

(Number of staff absent over period/
average no. of employees over the same period) x100 = %