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Interpretation of Ratios

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Interpretation of Ratios

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • June 4, 2017 at 5:54 pm #390290
    trevon2020
    Member
    • Topics: 7
    • Replies: 14
    • ☆

    Hey, I have a slight problem with my opening statement in my ratio analysis. I can interpret under profitability, liquidity and gearing and give a conclusion but most of the answers to these analysis always have an opening statement. It that necessary and if so any tips?

    June 4, 2017 at 6:34 pm #390305
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Well, if you’ve read so many of the printed solutions that you are able to say “but most of the answers to these analysis always have an opening statement” surely these opening statements that you have read must be a fruitful area for you to select sample opening statements

    I don’t believe that there is any hard and fast rule – just a short sentence to ease the reader into the heavyweight discussion about the possible reasons why the current ratio has fallen from 1.6:1 down to 1.4:1, a fall of 12.5%

    Imagine that you’re going to explain this movement to your grandmother (no offence to your grandmother!)

    Take it easy, keep it simple. Simple is good 🙂

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