Finance Flashcards
(6 cards)
1
Q
Return on Capital Employed (ROCE)
A
Measures efficiency and profitability of a firms invested capital
2
Q
Current Ratio
A
Is a short-term liquidity ratio that calculates the ability of a business to meet its debts within the next 12 months
3
Q
Acid test/quick ratio
A
Measures a firms ability to meet its short-term debts. Igonring stock
4
Q
Debtor days ratio
A
Measures the average number of days a business takes to collect debts from its customers who have bought goods and services on trade credit.
5
Q
Creditor days
A
Measures the average number of days a business takes to repay its creditors
6
Q
Gearing ratio
A
Reveals the degree to which a business is financed by loan capital.
