finacial ratios

HideShow resource information
  • Created by: jadewins
  • Created on: 04-11-14 19:36
View mindmap
  • financial ratios - you can use them to compare firms and to compare a firm performance over time
    • the acid test ratio = current assets.
      • current assets -stock \ current liabilities
    • the current ratio = current assets / current liabilities
    • inventory turnover ratio = cost of sales / cost of average stock held
    • assets turnover ratio = sales revenues = assists
    • efficiency of performance ratios show how efficiently the firm is working


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Business Plans resources »