How To Interpret The Financial Performance Of A Business By Calculating And Analysing Profitability Ratios And Liquidity Ratios:
Gbogbo ọrọ náà
Two businesses can both make a profit, but which uses its money better, and which could pay its bills tomorrow? Ratios turn the figures in the accounts into percentages and numbers you can compare, revealing how profitable and how safe a business really is.
This lesson explains the key profitability ratios (ROCE, gross and net profit margins) and liquidity ratios (current and acid test), how to calculate them and what they tell us. By the end you will be able to work out and interpret each ratio.
Ebumnobi
- Gross profit margin
- Profit margin
- Return on Capital Employed
- Current ratio
- Acid test ratio
Akọmọ Ojú-ẹkọ
Ọ dị na ngwa Green Bridge
Budata ngwa Green Bridge CBT na ekwentị maọbụ kọmputa gị iji nweta akwụkwọ ndụmọdụ zuru oke, ajụjụ mmụta, na ndị ọzọ.
Ayẹwo Ẹkọ
Ekele diri gi maka imecha ihe karịrị na How To Interpret The Financial Performance Of A Business By Calculating And Analysing Profitability Ratios And Liquidity Ratios:. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.
Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.
Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.
- Gross profit margin is calculated as: A. net profit / revenue x 100 B. gross profit / revenue x 100 C. gross profit / capital x 100 D. revenue / gross profit x 100 Answer: B
- ROCE measures profit as a percentage of: A. revenue B. inventories C. capital employed D. current liabilities Answer: C
- The acid test ratio differs from the current ratio because it: A. adds inventories B. removes inventories from current assets C. uses revenue D. ignores liabilities Answer: B
- Current assets are $80,000 and current liabilities are $40,000. The current ratio is: A. 0.5 B. 1.0 C. 2.0 D. 4.0 Answer: C
- A current ratio below 1 suggests the business: A. has plenty of cash B. may have cash-flow problems C. is highly profitable D. has no liabilities Answer: B
Ọ dị na ngwa Green Bridge
Budata ngwa Green Bridge CBT na ekwentị maọbụ kọmputa gị iji nweta akwụkwọ ndụmọdụ zuru oke, ajụjụ mmụta, na ndị ọzọ.
Ọ dị na ngwa Green Bridge
Budata ngwa Green Bridge CBT na ekwentị maọbụ kọmputa gị iji nweta akwụkwọ ndụmọdụ zuru oke, ajụjụ mmụta, na ndị ọzọ.
Àwọn Ìwé Tó Dáa Láti Kà
Meecha Ajụjụ Ule Ọmarịcha
Ị chọrọ ime ajụjụ ule ọmarịcha gbasara How To Interpret The Financial Performance Of A Business By Calculating And Analysing Profitability Ratios And Liquidity Ratios:? Budata ngwa Green Bridge CBT iji nweta ajụjụ ule ọmarịcha na nyocha zuru ezu gbasara isiokwu a.
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