Evidence D (New Balance)

HideShow resource information
View mindmap
  • Evidence D
    • Current ratio
      • 2012 = 1.4:1
      • Current assets/current liabilities
      • Ability to pay debts over next year
      • 2013 = 1.03:1
      • 1.5:1 is preferable
    • Acid test ratio
      • 2012 = 0.82:1
      • 2013 = 0.58:1
      • Current assets - stock/current liabilitiws
      • Ability to pay debts immediately
      • 1:1 is needed to only just cover
    • ROCE (return on capital employed)
      • 2012 = 2.68%
      • 2013 = 38.12
      • The higher the better - more money made
      • operating profit (net profit)/capital employed x 100%
      • Compares net profit to amount of money in the business
    • Gearing ratio
      • Measures how reliant a firm is on borrowed money
      • Untitled

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Business case studies resources »