Analysis and interpretation of financial statements
By Roy on June 6, 2010
Return on capital employed (ROCE) is the ratio which measures the relationship between the size of the profit figure relevant to the size of the business.
Posted in Analysis and interpretation of financial statements |
By Roy on June 6, 2010
The percentage change in sales: Change in sales as a percentage of sales.
Posted in Analysis and interpretation of financial statements |
By Roy on June 6, 2010
Trading profit margin is affected by more factors than the gross profit margin but it’s equally useful.
Posted in Analysis and interpretation of financial statements |
By Roy on June 5, 2010
Gross profit percentage is the margin that the company makes on its sales revenue. It’s expected to remain reasonably constant from year to year.
Posted in Analysis and interpretation of financial statements |
By Roy on June 5, 2010
The current ratio and quick ratio are relevant to consider the nature of the business. And they can be distorted by window dressing.
Posted in Analysis and interpretation of financial statements |
By Roy on June 5, 2010
The quick ratio is also known as the acid test ratio, becasue it provides the acid test of whether the company has sufficient resources (receivables and cash) to settle its current liabilities.
Posted in Analysis and interpretation of financial statements |
By Roy on June 4, 2010
The current ratio measures the adequacy of current assets to meet short-term liabilities. But companies vary in their level of current ratio depending on the trade, and the current ratio should be looked at what is normal for the business.
Posted in Analysis and interpretation of financial statements |
By Roy on June 1, 2010
The receivables collection period insteads the time to regain the receivables. The longer the receivables collection period is, the worse the business has.
Posted in Analysis and interpretation of financial statements |
By Roy on May 31, 2010
How to calculate inventory turnover? Firstly, you must know the inventory turnover formulas. Here is the example.
Posted in Analysis and interpretation of financial statements |
By Roy on May 31, 2010
The result of inventory turnover analysis is depended on the nature of the business. If the inventory turnover increased, it is not possible to analyse that is satisfactory or unsatisfactory, because the nature of the business is unknown.
Posted in Analysis and interpretation of financial statements |
