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Unit 3.5

Horizontales
Examine the ability of a firm to pay its short-term liabilities
A short-term liquidity ratio that calculates the ability of a business to meet its debt within the next twelve months
Examine profit in relation to other figures
An efficiency ratio measuring the profit of a business in relation to its size
The percentage of sales revenue that turns into net profit
The value of all long-term sources of finance
Verticales
A situation where a firm is unable to pay its short-term debts
Possessions of a business that can be turned to cash quickly without losing their value
A liquidity ratio that measures a firm's ability to meet its short-term debts
A profitability ratio that shows the percentage of sales revenue that turns into gross profit
How well a firm's resources have been used