Liquidity ratio - My first tutorial

[mattonline]

Ok i've been working on a small Liquidity ratio tutorial which will hopfully help people in understanding the ratios

Heres the link

http://www.entrepreneurforum.co.uk/s...=3491#post3491

I have yet to add the Asset Test ratio will be up soon.

[postman da rich kid]

checking it out now. thanks!

[mattonline]

Just added the Asset test ratio i said i would add,

http://www.entrepreneurforum.co.uk/s...=3491#post3491

scroll down a little any questions about it just ask.

Soon to add

ROCE -Return on capital employed ratio
Gross profit margin
net profit margin
gearing ratio
stock turnover
debtors days
asset turnover

[akula]

very good

who doesn't love ratios!

matt, I would have also like a bit on horizontal/vertical analysis, and some industry peer benchmarks for ratios

the mistake I've seen entrepreneurs do in forecasts is to have incongruent percentage changes over time between their forecasted expenses/sales and EBITA/sales ratios...in other words, the entrepreneurs indivertibly say "We're gonna make all this profit, but we're not gonna spend any money getting there"...not realistic planning...kills plan credibility