Chapter 5 - Financial Ratios Flashcards
1
Q
What are financial ratios?
A
- means of assessing financial health of business
- elimination of problem of scale by use of ratios
- highlights financial strenghts and weaknesses (but not WHY)
2
Q
Types
A
- Profitability
- Efficiency
- Lquidity
- Financial Gearing
3
Q
A