Gearing
Gearing in a Nutshell Gearing measures the proportion of a business’s capital that comes from long-term borrowing rather than shareholders’ equity. A gearing ratio above 50% means the company relies more on…
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8 min
Spec point: A-Level Edexcel – 3.5 Assessing Competitiveness
Every note that covers this specification point.
Profitability
Profitability in a Nutshell Profitability measures how effectively a business turns its revenue into profit after all costs have been deducted. It is not the same as profit itself: a business earning…
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10 min
Absenteeism
Absenteeism is the habitual or frequent absence of employees from work without valid reason. It is measured as a percentage using a simple formula, and high rates signal problems with motivation, management, or working conditions. Businesses track absenteeism to identify workforce issues, reduce costs, and improve productivity. Understanding this metric is essential for GCSE and A-Level Business Studies students.
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10 min
Labour Turnover
Labour turnover measures the percentage of employees leaving a business over a set period. It is calculated by dividing the number of staff who leave by the average number of employees, then multiplying by 100. A high rate signals potential problems with pay, management, or working conditions, while a low rate suggests strong staff retention and satisfaction.
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11 min
Labour Productivity
Labour productivity measures the output produced per worker over a given period. It is calculated by dividing total output by the number of employees. A rise in productivity per worker means a business is getting more from its workforce, which can lower unit costs and boost profitability. Understanding this metric is essential for GCSE and A-Level Business Studies students, as it connects to efficiency, competitiveness, and human resource management.
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12 min
Labour Retention
Labour retention measures how well a business keeps its employees over a set period. A high retention rate suggests strong job satisfaction, effective management, and competitive pay, while a low rate signals problems that could increase costs and reduce productivity. This metric is essential for GCSE and A-Level Business Studies students to understand, calculate, and evaluate.
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10 min