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GEARING is the proportion of the capital employed of a company that is financed by lenders rather than shareholders.
DEPRECIATION ALLOCATION is the allocation of the cost of capital expenditures so that revenue is matched with expenses for items that will last more than one year (land is not depreciable). The methodology is to allocate plant and equipment cost to expense through the use of accelerated, straight line and units of production amortization methods; as well as the disposal of assets; and, repairs and betterments to assets.
RETURN ON SALES is a measure of a companys profitability, equal to a fiscal years pre-tax income divided by total sales.
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