Interpretation of Financial Statements part a - ACCA Financial Accounting (FA) lectures

10 Comments

1. J
   John MoffatTutor·2y ago

   If we have enough information to be able to calculate the average then yes. However normally we only know the net assets at the end of the year in the exam and so we use that.
2. E
   Elvis·3y ago

   Thank you so much Professor you are the best just passed FA exam today 31/03/23 representing from Ireland/Zimbabwe
3. J
   John MoffatTutor·3y ago

   Thank you for your comment, and many congratulations :-) :-)
4. G
   Gareisha·6y ago

   Hey, why did you use profits from operations and not profit before tax to calculate the net profit ratio?
5. J
   John MoffatTutor·6y ago

   The company does not control the tax rate and so taking the profit after tax is not measuring how well the company is being run.
6. D
   Daniel·7y ago

   Hi John,
   
   is the capital Employed the same as Total Long term Capital?
7. N
   nimmonen·7y ago

   Why is the ratio called "asset turnover" when you working with sales and long term capital?
8. J
   John MoffatTutor·7y ago

   Long-term capital is equal to the net assets. I explain the relevance of the measure in the lecture.
9. J
   Jeslin·2y ago

   Sir asset turnover ratio equals revenue divided by average total assets
10. D
    Dilnaz·1y ago

    Mr. Moffat, i thought equity equals to the net assets, as long-term capital equals to equity+debt(NCA) or maybe I didnt understand it correctly. Could you please clarify it?