advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Return on capital employed(ROCE) is known as the primary ratio because it’s the most important measure of profitability. The ratio shows how efficiently a business is using its resources. Return on capital employed(ROCE) = Profit/Capital employed*100%
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Equity to assets ratio = Equity share capital plus reserves/Total assets*100% The equity to assets ratio indicates the finance and profitability of the company. It shows what proportion of total assets is financed by equity, and [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Current ratio = Current assets/Current liabilities The current ratio measures the adequacy of current assets to meet short-term liabilities. Traditionally, a figure of 1.5 is regarded as the norm. When you’re comprasing the current ratio, you [...]
