Financial Performance ratios

nicmaygreg Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
Hi, does anyone know which ratios are most important in Financial Performance exam? I learnt them all for Finanacial Statements but have forgotten most of them already. Do I need to know them all or is there not as many for this one? Got my exam tomorrow.


  • guinea pig
    guinea pig Registered Posts: 402
    I should do some quick revision as they are important as performance indicators, and often come up in the written questions. Its not just about knowing how to calculate them, but understanding what they actually mean, and which ones to use to check e.g profitability, use of resources, return on assets. Have a look at the practice CBA's, there are questions comparing two scenarios where you need to calculate the profit margin to see which one is more profitable.
    Good luck tomorrow,
  • nicmaygreg
    nicmaygreg Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
    Thanks I better have a read through them then! The gross profit and net profit margins I am ok with these are the ones that seem to come up the most.
  • Starryeyes
    Starryeyes Registered Posts: 24 Dedicated contributor 🌟 🐵 🌟
    make sure you remember the high low method as well, as this was our last question on the paper and all my college buddies got it, and gl for tomorrow
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