ratios Flashcards
1
Q
what are the limitations of ratios?
A
info is historic, can only be used to compare to company similar is size, doesn’t take pestec into account, do not reflect effect of new policy,
2
Q
uses of ratios!!!
A
to compare the current years performance withe precious years, to compare against over organisation, to interpret info, to use info for forecasting, to assist decision making.
3
Q
eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
A
paul
4
Q
profitability ratios!!!NOW!!!!
A
gross profit margin, profit markup, net profit margin,
5
Q
efficiency ratio
A
return on capitol employed, rate of stock urnover
