FIN2601 Basic+Financial+ratios Summary.
BASIC FINANCIAL RATIOS Financial ratios are to provide meaningful comparisons between items in the financial statements FIN2601 Basic+Financial+ratios Summary. Categories of Ratios • Liquidity Ratios The ratios refer to a company’s ability to cover current liabilities by means of its current assets. • Activity Ratios The ratios determine if sufficient cash flow are generated to cover the company obligation. Categories of Ratios • Debt Ratios Ratios that provide an indication of how much debt the company has and whether the company can take on more debt. • Profitability Ratios The ratios evaluate the efficiency with which a company utilises its capital to generate turnover.
Geschreven voor
- Instelling
- University of South Africa
- Vak
- FIN2601 - Financial Management
Documentinformatie
- Geüpload op
- 29 november 2021
- Aantal pagina's
- 21
- Geschreven in
- 2021/2022
- Type
- SAMENVATTING
Onderwerpen
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fin2601
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fin2601 basicfinancialratios summary