BUSS3- Understanding Finance

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  • Finance
    • Profitable
      • Gross profit margin
        • (Gp/sr) x100
      • Net profit margin
        • (Np/sr) x 100
      • Return on capital employed
        • (Np/ce) x100
          • ce=capital employed.
    • Shareholders return
      • How well the return is
      • Analyse how good return is compared to other businesses
    • Investment
      • If you are getting the right ratios
      • What % of capital is funded by a bank loan (called gearing)
    • Efficient
    • Liquidity
      • Assets to cash, to pay bills!
      • How easy something is to turn into cash

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