Ratio Analysis Introduction to Business Accounting Week 4 Ratio Analysis – What is it? Ratios are Mathematical formulae that simplify financial information for the non-financial specialist whose responsibility is to understand, analyse, and act upon reported financial information
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Introduction to Business Accounting
Average stock held (or closing stock)
Net profit before interest and tax X 100
Share capital + reserves + long term loans
A ratio that indicates the efficiency and profitability of a company's capital investments.
ROCE should always be higher than the rate that the company borrows at, otherwise any increase in borrowings will reduce shareholders' earnings