ideal ratios for gearing current and quick ratios

Home Forums Ask ACCA Tutor Forums Ask the Tutor ACCA P3 Exams ideal ratios for gearing current and quick ratios

This topic contains 1 reply, has 2 voices, and was last updated by Avatar of gromit gromit 1 year, 4 months ago. This post has been viewed 77 times

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts

  • avatar
    sharonsamm
    Participant
    • Topics: 1
    • Replies: 0

    Can i pls have the ideal ratio answers for gearing current and quick ratios pls


    Avatar of gromit
    gromit
    Participant
    • Topics: 1
    • Replies: 1471

    There aren’t idea ratios. All of ratio analysis depends on comparison, usually with the previous year.

    However, a quick ratio much less than one could be a cause for concern. S for gearing, I think that interest cover (profit before interest/interest) would be more useful.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.