Unit 15 ratios


My turn for a query please.

I'm going through the cash management/credit control unit. One area which i am struggling on, is trying to remember the different ratios, used for assessing new customers against their annual reports. Ie liquidity, profitability and gearing ratios. Does anyone have any tips on how to remember them easier ie using nnemonics, ryhmes etc.

Thank you.



  • reddwarf
    reddwarf Registered Posts: 528
    I learnt the fomula by rote (got my OH to test me when we were watching tv!) and then did back ground reading on interpretaton because the way results are viewed is not an exact science!

    I found the osborne book ' business accounts' by David Cox had a good suggestions for interpretation.

    There is lots of stuff on the internet, it's worth having a little read of that because it gives you real companies and their results to have a look at.

    Good luck!
  • mikes
    mikes Registered Posts: 254
    Thank you for that.

    I'll have a look out for the book and try some more searches.

  • *Jo
    *Jo Registered Posts: 509
    Hi, i found the site "bized" had some really good ratio stuff on it. Its got a section based on learning the ratios along with examples for different business types. If you google "bized ratio analysis" it should come up.
  • jow774
    jow774 Registered Posts: 465 Dedicated contributor ? ? ?
    Thanks for the info on bized. Does anyone know of any sites that offer free learning resources for costing?
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