FNST ratios

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agg25
agg25 Registered Posts: 20 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Hi
Has anyone got explanations of what all the fnst ratios mean?

Thanks

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  • guinea pig
    guinea pig Registered Posts: 402 Dedicated contributor 🦉
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    Hi,
    Ratios are basically performance indicators to help with; monitoring the use of resources, controlling the business, and planning for the future. They can provide a good indication of the financial health of a business,, and can be compared with previous years, and expected results within the same industry.
    They may relate to Liquidity,(e.g. current ratio) Profitability (e.g. Return on Capital employed) or Financial position (e.g. gearing of business)
    Learn them well, because they come up again in the Financial Performance exam, and also the optional Credit Management one.
    GP

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