Document containing the twelve financial management ratios tested in business management 113 as well as the layout of the statement of comprehensive income.
Table of Contents
Profitability ................................................................................................................................. 2
1. Return on Total Assets ....................................................................................................... 2
2. Return on Shareholders’ Equity.......................................................................................... 2
Profit Margins ............................................................................................................................. 2
3. Gross Profit Margin ............................................................................................................ 2
Liquidity ...................................................................................................................................... 2
4. Current Ratio ...................................................................................................................... 2
5. Acid Test Ratio .................................................................................................................... 2
Turnover Ratios and Times ......................................................................................................... 2
6. Turnover Ratio of Inventory ............................................................................................... 2
7. Turnover Time of Inventory................................................................................................ 2
Solvency ..................................................................................................................................... 3
8. Debt-to-assets Ratio (Debt Ratio) ....................................................................................... 3
Coverage Ratios .......................................................................................................................... 3
9. Finance Cost Coverage ....................................................................................................... 3
Investment Ratios....................................................................................................................... 3
10. Earnings Per Share............................................................................................................ 3
11. Earnings Yield ................................................................................................................... 3
12. Price-earnings Ratio ......................................................................................................... 3
Statement of Comprehensive Income........................................................................................ 4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller izelbarnard. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.75. You're not tied to anything after your purchase.