Ratio Analysis Flashcards by Louis Whetham | Brainscape

Q

What do Ratios allow for?

A

Comparison with companies of different sizes (within the same industry + region)
Comparison over time
Comparison of different: Products, regions, departments

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Q

What are the types of ratios?

A

Profitability ratios
Liquidity ratios
Efficiency “activity” ratios
Solvency “gearing or leverage” ratios

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Q

What ratios are defined as PROFITABILITY ratios?

A

Gross Profit Margin
Operating Profit Margin
Profit Margin
Net Asset Turnover
Return on Assets (ROA)
Return on Capital Employed (ROCE)

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Q

A

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