More cards in this set

How quickly a business can pay its creditors

tells us how much profit a business makes per £1 on cost of sales, can be improved by increasing prices

tells us amount of net profit per £1 of turnover a business has earned. Can be improved through lowering costs

shows the annual percentage return on money needed to purchase a share - is good if its higher than rate of interest

ideally between 0.75:1 and 1:1, shows amount of liquid assets in relation to every £1 of liablities