Slides in this set
Ratios can help answer Q's like...
Profitability Is the business making a profit? Is it growing?
How efficient is the business at turning revenues into profit?
Is it enough to finance reinvestment?
Is it sustainable (high quality)?
How does it compare with the rest of the industry?
Financial Is the business making best use of its resources?
efficiency Is it generating adequate returns from its investments?
Is it managing its working capital properly?
Liquidity and Is the business able to meet its short-term debts?
gearing Is the business generating enough cash?
Does the business need to raise further finance?
How risky is the finance structure of the business?
Shareholder What returns are owners gaining from their investment?
return How does this compare with alternative investments?…read more