Theme 3 Calculations

• Average rate of return = net return (profit) per annum / capital outlay (cost)
• Expected values = success (profitability x expected profit) + failure (profitability x expected profit/loss)
• Total float = LFT of activity - EST of activity - duration
• Free float = EST start of next task - EST of this task - duration
• Working Capital = current assets - current liabilities
• Gearing ratio = non-current liabilities / capital employed x 100
• Capital employed = share capital + retained earnings + non-current liabilities
• Capital employed = total equity + non-current liabilities
• Return on capital employed = operating profit / capital employed x 100
• Labour productivity = total output (per period of time) / average number of employees (per period of time)
• Labour turnover = number of staff leaving over a time period / average number of staff in post during period x 100
• Labour retention = number of staff staying (over a time period) / average number of staff in post (in the time period) x 100
• Rate of absenteeism = number of staff absent on a day / total number of staff employed x 100