CAPE Management of Business Unit 1 · 2014 · Paper 2 · Question 6(a)(ii)
State THREE ways in which ratio analysis is important to businesses.
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Practise this questionOther parts of this question
- 6(a)(i)Define the term 'ratio analysis'.[2 marks]
- 6(b)(i)Compute, correct to one decimal place, the Acid Test ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.[5 marks]
- 6(b)(ii)Compute, correct to one decimal place, the Gearing Ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.[5 marks]
- 6(b)(iii)Compute, correct to one decimal place, the Net Profit Margin for the year ended 30 June 2013, and explain what it indicates about the performance of the…[5 marks]
- 6(b)(iv)Compute, correct to one decimal place, the Return on Capital or Equity for the year ended 30 June 2013, and explain what it indicates about the performance of…[5 marks]
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