Techniques for Business Decisions
8: able to understand the viability of a company by calculating accounting ratios

8. able to understand the viability of a company by calculating accounting ratios
Read the Biz/ed material on ratios provided as part of the Introduction to the Study of Management module
- Theory Explanations - Accounting and Finance [material on ratios]
APEL task [max 400 words]
Describe how the following accounting ratios are used by using your own (hypothetical) figures in the formulae provided:
  • Gearing ratios
  • Liquidity ratios (current, acid test)
  • Profitability ratios (rate on capital employed,profit margin)

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