Hello sir, I am studying financial analysis. Was doing the question 5 in bpp exam kit, tillinton. I am getting confused with all the ratios, i know the standard formulas for ratios, yet i see multiple variations of it when doing such questions. I would like some advice on how to go about it or rather how to approach it.
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2h ago#1The most important thing in these questions is not simply the ratios themselves but the use of the ratios. This question wants you to address the comments by the chief executive and the investor so you need to decide which ratios will be relevant to their comments and advise accordingly. If that means varying the 'standard' ratios then no problem - the marks are more for understanding and advising on the results rather than the exact formulas used.
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