{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Accounting Lecture Notes 09

Accounting Lecture Notes 09 - Business performance analysis...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
    Business performance  analysis 1 and 2 Learning objectives Analyse business performance through the use of ratios Advantages and limitations of ratio analysis in interpreting accounting  information Calculate and comment on  Profitability ratios Liquidity ratios Efficiency ratios Next week Investment ratios Financial structure: gearing
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
    Activities and Reminders  Read Chapter 6 Atrill and McLaney Moodle: Understand Accounts EQL Cash and Liquidity Profitability Business and Gearing Risks Investor ratio Assessment Quiz 2 7/8 December on Moodle All topics  except week 10 ( Gearing  and investment ratios) Chapters 1-6
Image of page 2
    Interpreting Accounting  Information Difficult to interpret by just looking at  individual numbers/items in acc’s Eg: is £20m profit good? Use ratios (i.e %) allows comparability by  removing issue of scale Interpretation depends on: Relationship among different accounting items External influences Company specific factors Industry specific factors Comparisons
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
    Similar businesses during the same period Planned performance Past periods Ratios may be compared with: Ratios benchmarks
Image of page 4
    Financial ratio classification Categories Profitability Efficiency Liquidity Financial gearing Investment
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern