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Financial Ratio Analysis - Liquidity Ratios and Gearing
9問 • 3年前
  • Oluwole Akande
  • 通報

    問題一覧

  • 1

    What are the 2 liquidity ratios?

    Current ratio and acid test

  • 2

    What is equity?

    Value of the business to owners after paying all liabilities, Total Assets - Total Liabilities

  • 3

    Define Ratio analysis

    Numerical analysis of a balance sheet

  • 4

    Define Capital Employed

    Total assets - current liabilities

  • 5

    Explain and Define Current Ratios

    Used to measure the ability of a business to pay short term debts, Expressed as Current Assets: Current Liabilities, Always Expressed as x:1, e.g. 0.75:1 instead of 3:4, A higher ratio (e.g. 6:1) means the business is more solvent, It is ideal to have a healthy current ratio before expanding

  • 6

    What is the Acid test Ratio

    (Current Assets - Stock): Current Liabilities

  • 7

    Explain Gearing

    The percentage of capital invested that is loans, 100(non-current liabilities)/ (total equity + non-current liabilities), Between 25 and 50 percent Gearing is "normal" but ideal percentage is dependant on context, Higher geared businesses are more affected by interest rate changes

  • 8

    Advantages of being highly geared

    Likely to be expanding the business due to high loan percentage, can make a business more competitive, Cheaper if interest is low, Less reliant on other sources of finance

  • 9

    Advantages of low geared businesses

    Lower loan repayments, Likely more attractive to potential shareholders, Less affected by rising interest - lower risk

  • All Maths Notation

    All Maths Notation

    Oluwole Akande · 72問 · 2年前

    All Maths Notation

    All Maths Notation

    72問 • 2年前
    Oluwole Akande

    Topic 6 - Further Mechanics - Glossary

    Topic 6 - Further Mechanics - Glossary

    Oluwole Akande · 8問 · 2年前

    Topic 6 - Further Mechanics - Glossary

    Topic 6 - Further Mechanics - Glossary

    8問 • 2年前
    Oluwole Akande

    Command Words

    Command Words

    Oluwole Akande · 26問 · 2年前

    Command Words

    Command Words

    26問 • 2年前
    Oluwole Akande

    Circuit Symbols

    Circuit Symbols

    Oluwole Akande · 15問 · 2年前

    Circuit Symbols

    Circuit Symbols

    15問 • 2年前
    Oluwole Akande

    Topic 4 - Materials - Upthrust and Viscosity

    Topic 4 - Materials - Upthrust and Viscosity

    Oluwole Akande · 5問 · 2年前

    Topic 4 - Materials - Upthrust and Viscosity

    Topic 4 - Materials - Upthrust and Viscosity

    5問 • 2年前
    Oluwole Akande

    Topic 5 - Waves and Particle Nature of Light - Ray Diagrams

    Topic 5 - Waves and Particle Nature of Light - Ray Diagrams

    Oluwole Akande · 5問 · 2年前

    Topic 5 - Waves and Particle Nature of Light - Ray Diagrams

    Topic 5 - Waves and Particle Nature of Light - Ray Diagrams

    5問 • 2年前
    Oluwole Akande

    Topic 8 - Nuclear and Particle Physics - Linear Accelerator and Particle Detectors

    Topic 8 - Nuclear and Particle Physics - Linear Accelerator and Particle Detectors

    Oluwole Akande · 14問 · 2年前

    Topic 8 - Nuclear and Particle Physics - Linear Accelerator and Particle Detectors

    Topic 8 - Nuclear and Particle Physics - Linear Accelerator and Particle Detectors

    14問 • 2年前
    Oluwole Akande

    Topic 10 - Space - Trigonometric Parallax

    Topic 10 - Space - Trigonometric Parallax

    Oluwole Akande · 8問 · 2年前

    Topic 10 - Space - Trigonometric Parallax

    Topic 10 - Space - Trigonometric Parallax

    8問 • 2年前
    Oluwole Akande

    Topic 7 - Electric and Magnetic Fields - Glossary

    Topic 7 - Electric and Magnetic Fields - Glossary

    Oluwole Akande · 7問 · 2年前

    Topic 7 - Electric and Magnetic Fields - Glossary

    Topic 7 - Electric and Magnetic Fields - Glossary

    7問 • 2年前
    Oluwole Akande

    Chapter 7 - Electric and Magnetic Fields - Coulomb's Law

    Chapter 7 - Electric and Magnetic Fields - Coulomb's Law

    Oluwole Akande · 7問 · 2年前

    Chapter 7 - Electric and Magnetic Fields - Coulomb's Law

    Chapter 7 - Electric and Magnetic Fields - Coulomb's Law

    7問 • 2年前
    Oluwole Akande

    Chapter 7 - Electric and Magnetic Fields - Electric Field Strength

    Chapter 7 - Electric and Magnetic Fields - Electric Field Strength

    Oluwole Akande · 11問 · 2年前

    Chapter 7 - Electric and Magnetic Fields - Electric Field Strength

    Chapter 7 - Electric and Magnetic Fields - Electric Field Strength

    11問 • 2年前
    Oluwole Akande

    Chapter 7 - Electric and Magnetic Fields - Electric Potential

    Chapter 7 - Electric and Magnetic Fields - Electric Potential

    Oluwole Akande · 12問 · 2年前

    Chapter 7 - Electric and Magnetic Fields - Electric Potential

    Chapter 7 - Electric and Magnetic Fields - Electric Potential

    12問 • 2年前
    Oluwole Akande

    Chapter 7 - Electric and Magnetic Fields - Capacitor Discharge

    Chapter 7 - Electric and Magnetic Fields - Capacitor Discharge

    Oluwole Akande · 11問 · 2年前

    Chapter 7 - Electric and Magnetic Fields - Capacitor Discharge

    Chapter 7 - Electric and Magnetic Fields - Capacitor Discharge

    11問 • 2年前
    Oluwole Akande

    問題一覧

  • 1

    What are the 2 liquidity ratios?

    Current ratio and acid test

  • 2

    What is equity?

    Value of the business to owners after paying all liabilities, Total Assets - Total Liabilities

  • 3

    Define Ratio analysis

    Numerical analysis of a balance sheet

  • 4

    Define Capital Employed

    Total assets - current liabilities

  • 5

    Explain and Define Current Ratios

    Used to measure the ability of a business to pay short term debts, Expressed as Current Assets: Current Liabilities, Always Expressed as x:1, e.g. 0.75:1 instead of 3:4, A higher ratio (e.g. 6:1) means the business is more solvent, It is ideal to have a healthy current ratio before expanding

  • 6

    What is the Acid test Ratio

    (Current Assets - Stock): Current Liabilities

  • 7

    Explain Gearing

    The percentage of capital invested that is loans, 100(non-current liabilities)/ (total equity + non-current liabilities), Between 25 and 50 percent Gearing is "normal" but ideal percentage is dependant on context, Higher geared businesses are more affected by interest rate changes

  • 8

    Advantages of being highly geared

    Likely to be expanding the business due to high loan percentage, can make a business more competitive, Cheaper if interest is low, Less reliant on other sources of finance

  • 9

    Advantages of low geared businesses

    Lower loan repayments, Likely more attractive to potential shareholders, Less affected by rising interest - lower risk