BUSINESS RATIO ANALYSIS

Ratio analysis-Frequently Asked Questions

Table/Summary Of Financial Accounting Ratio Analysis

What Is Capital Employed

Undercapitalization or overtrading and its tell tale/signs/symptoms

Overcapitalization and its tell tales/signs/symptoms

Proprietary Ratio

PROFITABILITY Ratio

Return On Assets

Net Profit Margin or Net Profit % over Sales

Gross Profit Margin or Gross Profit % over Sales

What is mark up and how does it affect gross margin percentages

LIQUIDITY Ratio

Current Asets Ratio

Quick Acid Test Ratio

CASH FLOWS Ratio

Cash flow efficiency ratio

Cash sufficiency ratio

ACTIVITY OR ASSETS UTILIZATION Ratio

Turnover of Fixed Assets Ratio

Turnover Of Inventory

Turnover Of Receivables

Total Assets Turnover Ratio

MARKET BASED Ratio

Dividend Yield Ratio

Net Asset Backing Ratio

Price-Earning Ratio

Earnings Per Share Ratio

LEVERAGE/GEARING Ratio

Net Interest Cover or Times Interest Earned

Debts Equity Ratio

Leverage Ratio or debt leverage gearing ratio

ACCOUNTING TEST QUESTIONS & ANSWERS

Accounting Test Question  IFS No 1 On Interpretation Of Financial Statements

Answer to Accouting Test Question IFS No.1

Accounting Test Question IFS No 2 On Interpretation Of Financial Statements

Answer to Accounting Test Question IFS No.2

Accounting Test Question IFS No 3 On Interpretation Of Financial Statements

Answer To Accounting Test Question IFS No 3

Accounting Test Question IFS No.4 On Intepretation Of Financial Statements

Answer to Accounting Test Question IFS No 4