More cards in this set

Card 6

Front

Measures the percentage of profit made from buying and selling. The higher the better.

Back

Preview of the front of card 6

Card 7

Front

Measures the percentage of profit made once expenses are deducted from gross profit. The higher the better.

Back

Preview of the front of card 7

Card 8

Front

Measures the percentage of investment returned to shareholders. The higher the percentage the happier shareholders will be.

Back

Preview of the front of card 8

Card 9

Front

Measure the ability to repay short term debts.

Back

Preview of the front of card 9

Card 10

Front

Compares current assets and current liabilities to measure the ability to repay short term debts. Expressed as ?:1. Over 2:1 is ideal as this shows the business can pay its debts twice over.

Back

Preview of the front of card 10

Card 11

Front

Compares current assets minus stick and current liabilities to measure the ability to repay short term debts in a crisis situation (when there might not be time to sell stock). Expressed as ?:1. 1:1 is acceptable as this shows a business can repay it

Back

Preview of the front of card 11

Card 12

Front

Measure how well a business uses their resources.

Back

Preview of the front of card 12

Card 13

Front

Measures the amount of times a business re-stocks during the year.

Back

Preview of the front of card 13