Ratio Analysis (Leaving Cert Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What is ratio analysis used for?
What is ratio analysis used for?
Evaluate company performance & financial health
What is the formula for Gross Profit Margin?
What is the formula for Gross Profit Margin?
(Gross Profit / Sales) x 100
What does a higher Gross Profit Margin indicate?
What does a higher Gross Profit Margin indicate?
Effective production cost management
What is the formula for Net Profit Margin?
What is the formula for Net Profit Margin?
(Net Profit / Sales) x 100
What is the formula for Return on Investment?
What is the formula for Return on Investment?
(Net Profit / Capital Employed) x 100
What is a good result for the Current Ratio?
What is a good result for the Current Ratio?
Above 2:1
What does the Acid Test Ratio exclude?
What does the Acid Test Ratio exclude?
Closing Stock
A gearing ratio of 3.4:1 is considered what?
A gearing ratio of 3.4:1 is considered what?
Highly geared
What is a good result for the Gearing Ratio?
What is a good result for the Gearing Ratio?
Below 1:1 (lowly geared)
Which is a limitation of ratio analysis?
Which is a limitation of ratio analysis?
Uses historical data that may not reflect future