Analysis of Financial data Flashcards
1
Q
What is liquidity?
A
The ability of a business to pay its debts as they fall due.
2
Q
What is stability?
A
The ability of a business to survive in the long term.
3
Q
What is Profitability?
A
The ability of a business to make an acceptable level of profit.
4
Q
What are some actions to improve liquidity?
A
Additional capital,
5
Q
Definition - Gearing ratio
A
Gearing describes the extent to which a business had funded its operations from borrowed funds rather than equity.
A business
6
Q
What is Gross profit ratio?
A
It is a measure of the level of
7
Q
A
