Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
    1. DragIT - Profitability ratios
    2. DragIT - Build the profitability ratios
    3. DragIT - Liquidity ratios
    4. DragIT - Build the liquidity ratios
    5. DragIT - Balance sheet
    6. DragIT - Efficiency ratios
    7. DragIT - Build the financial efficiency ratios
    8. DragIT - Build the shareholder ratios
    9. DragIT - Gearing ratio
    10. DragIT - Build the gearing ratio
    11. DragIT - Ratio analysis
17. Printable version

DragIT - Ratio analysis

In the image below, try clicking on the arrows beside each variable to see the impact of changes on the profitability ratios. Once you have done that, you may like to have a go at the question below.

1

Ratio analysis Match the formulae below to the ratio which they calculate. a) Profit before tax and interest divided by capital employed x 100 Choose... Debtor days Acid test ratio Return on capital employed Net profit margin Current ratio Gearing ratio b) Current assets divided by current liabilities Choose... Debtor days Acid test ratio Return on capital employed Net profit margin Current ratio Gearing ratio c) Debtors divided by sales revenue x 365 Choose... Debtor days Acid test ratio Return on capital employed Net profit margin Current ratio Gearing ratio d) Current assets less stock divided by current liabilities Choose... Debtor days Acid test ratio Return on capital employed Net profit margin Current ratio Gearing ratio e) Net profit divided by sales revenue x 100 Choose... Debtor days Acid test ratio Return on capital employed Net profit margin Current ratio Gearing ratio f) Loan capital divided by capital employed x 100 Choose... Debtor days Acid test ratio Return on capital employed Net profit margin Current ratio Gearing ratio Yes, that's correct. Well done.No, that's not right. You might like to look back at the definitions and the DragIT sections before having another go.Your answer has been saved.