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
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