ratios

When you say “reply ASAP” is it acceptable if the reply comes only more than 2 hours after your post?

There really is no need to put comments like “reply ASAP” – if you post on this page, I’ll get back to you as soon as I am able.

However, having said that – I can’t help you because you aren’t telling me what is causing your confusion.

There are lots of past exam questions asking for ratios, ratio analysis and the use of ratios to support commentary on performance and financial position

Please be specific about your confusion and I’ll see what I can do

Why do you feel it necessary to write”Please assist”? Has there been ever a question that you have asked in the past where a tutor hasn’t assisted? EVER? HAS THERE?

I assume that there is no problem calculating the ratios

Comparison? One calculated ratio is compared with another calculated ratio. The later one is either better or worse, higher or lower, bigger or smaller, longer or shorter. That’s what the word “comparison” involves

Common sense alone will tell you whether the movement represents an improvement in the entity’s fortunes or is it an adverse movement

Now write about it!

But don’t say simple things like “the current ratio has moved from 3:1 to 3.6:1” because any fool could see that. Preferable would be “the current ratio has improved by 20% compared with the previous year. This could be the result of tighter inventory control (or more effective debt collection, faster settlement of supplier debt, more effective use of trade discounts on offer from suppliers, ……..)”

And read! Loads of printed solutions from past exam questions

Finally, please don’t write things like “Please assist”. Just post your question on the Ask the Tutor page and you WILL get a response