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Ratio Analysis
Accounting · 6th Year · Interpretation of Accounts · 3.º Período

Ratio Analysis

Calculation of profitability, liquidity, solvency, and investment ratios. Using mathematical tools to evaluate financial performance.

NCCA Curriculum SpecificationsLC Accounting Syllabus Section 1.9LC Accounting Syllabus Section 1.10

About This Topic

Calculation of profitability, liquidity, solvency, and investment ratios. Using mathematical tools to evaluate financial performance.

Key Questions

  1. How do we measure a company's profitability and efficiency?
  2. What ratios best indicate a firm's ability to pay its short-term debts?
  3. How is gearing calculated and why is it important to investors?