08-16-2017, 09:56 PM
Purpose:
To identify aspects of a business s performance to aid decision making
Quantitative process may need to be supplemented by qualitative factors to get a complete picture
5 main areas:
1.Liquidity the ability of the firm to pay its way
2.Investment/shareholders information to enable decisions to be made on the extent of the risk and the earning potential of a business investment
3.Gearing information on the relationship between the exposure of the business to loans as opposed to share capital
4.Profitability how effective the firm is at generating profits given sales and or its capital assets
5.Financial the rate at which the company sells its stock and the efficiency with which it uses its assets
for more details, please visit
http://bized.co.uk/educators/16-19/busin.../ratio.ppt
To identify aspects of a business s performance to aid decision making
Quantitative process may need to be supplemented by qualitative factors to get a complete picture
5 main areas:
1.Liquidity the ability of the firm to pay its way
2.Investment/shareholders information to enable decisions to be made on the extent of the risk and the earning potential of a business investment
3.Gearing information on the relationship between the exposure of the business to loans as opposed to share capital
4.Profitability how effective the firm is at generating profits given sales and or its capital assets
5.Financial the rate at which the company sells its stock and the efficiency with which it uses its assets
for more details, please visit
http://bized.co.uk/educators/16-19/busin.../ratio.ppt