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Hi,
Please can somebody help, I am studying at uni and need to analyze some ratios, I really do not understand what they mean!!!
ROCE ratio 2011 is 31% and in 2010 was -2.7% is that good or bad?
Trade receivables ratio has gone from 43.9 in 2010 to 32.7 in 2011 - does this mean customers are taking less to time to pay?? ie average of 32 days in 2011??
Trade payables ratio has gone from 142.6 in 2010 to 105.85 in 2011 - does this mean they are getting better at paying?? and comparing the 2 they are receiving payment before having to pay for materials etc??
I know this is pretty basic stuff but only been studying this for 5 weeks, whilst working full time! And any help will be appreciated!
Thanks in advance
Please can somebody help, I am studying at uni and need to analyze some ratios, I really do not understand what they mean!!!
ROCE ratio 2011 is 31% and in 2010 was -2.7% is that good or bad?
Trade receivables ratio has gone from 43.9 in 2010 to 32.7 in 2011 - does this mean customers are taking less to time to pay?? ie average of 32 days in 2011??
Trade payables ratio has gone from 142.6 in 2010 to 105.85 in 2011 - does this mean they are getting better at paying?? and comparing the 2 they are receiving payment before having to pay for materials etc??
I know this is pretty basic stuff but only been studying this for 5 weeks, whilst working full time! And any help will be appreciated!
Thanks in advance