Ratio Analysis

Accounts · Chapter 12 · 5. Ratio Analysis (Section B)

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Your path through this chapter

1
Visual lesson Beta
1. Part 1: Liquidity and Solvency Ratios, and Effects of Transactions19 slides
2. Part 2: Activity and Profitability Ratios20 slides
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Notes Beta
8 sections with key terms, formulas and exam tips.
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Flashcards Beta
32 cards for quick recall of key terms and facts.
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Practice
84 board-style questions with instant checks: Multiple choice 27, Short answer 24, Long answer 9, Assertion and reason 6.
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Chapter test Free
Short and long chapter tests in board pattern, with results and analysis.
- Chapter test (long) — Ratio Analysis · 40 marks · 100 min
- Chapter test (short) — Ratio Analysis · 20 marks · 50 min
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Liquidity ratios: current ratio and quick (liquid/acid-test) ratio
Solvency ratios: debt to equity, proprietary, debt to total assets, interest coverage
Activity ratios: trade receivables, trade payables, inventory and working capital turnover
Profitability ratios: gross profit, net profit, operating, operating profit ratio, EPS, P/E ratio, return on investment
Effect of transactions on current, quick and debt-equity ratios