BUSS3 ratios 0.0 / 5 ? Business StudiesUnemploymentA2/A-levelAQA Created by: KathrynCreated on: 20-02-14 13:32 36924571810 Across 1. shows the annual percentage return on money needed to purchase a share - is good if its higher than rate of interest (8, 5) 4. Indicates the extent to which business relies upon borrowed funds compared to equity funds (7) 5. how quickly a business collects its debts. In general, 30 - 45 days is desirable but varies between industries (6, 4) 6. acronym, indicated how much money is made by the business, compared to how much has been put in (4) 8. measures the number of times a year a business sells the value of its stocks, aims to get stockholding as low as possible (5, 8) 10. can be reffered to as working capital ratio, should be higher than 1:1, value below 1.5:1 suggests liquidity/solvency problem (7, 5) Down 2. tells us amount of net profit per £1 of turnover a business has earned. Can be improved through lowering costs (3, 6, 6) 3. How quickly a business can pay its creditors (8, 4) 7. ideally between 0.75:1 and 1:1, shows amount of liquid assets in relation to every £1 of liablities (4, 4) 9. tells us how much profit a business makes per £1 on cost of sales, can be improved by increasing prices (5, 6, 6)
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