Ratio Analysis Multiple choice test about Ratio Analysis 4.5 / 5 based on 4 ratings ? Business StudiesBusiness PlansA2/A-levelAll boards Created by: Griffin DickinsonCreated on: 14-04-10 11:19 What do Profitability Ratios do? measure the profit made over the past year 1 of 6 What do financial efficiency Ratios do? measure the efficiency of the business in terms of the use of its resources in generating sales. 2 of 6 What do Gearing Ratios do? measures the proportion of the capital of the business which has come from external sources, and must be repaid with interest. 3 of 6 What does the acid test do? Measure the liquidity 4 of 6 Shareholder's Ratios... What do they do? measure the strength of the company, its share price and its dividends. 5 of 6 What do Liquidity Ratios do? measure the solvency of the business and its ability to meet short-term debts. 6 of 6
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