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Sept/Dec 2016, Q1

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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May 31, 2018 at 5:47 pm #455139
tasnuva
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In the discussion para, they talked about the ratio of earnings as a percentage of Non current assets. What was the logic behind using this particular ratio here ?
May 31, 2018 at 6:19 pm #455147
John Moffat
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If there are more non-current assets then you would expect to be able to earn more.
Therefore is makes sense to compare the ratio to see if things actually are better.
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