Cost Of Capital LET US SUM UP - Accounts and Finance for Managers

The accounting ratios are applied to study the relationship in between the quantitative information available and to take decision on the financial performance of the firm. The financial performance and position of the firm can be analysed and interpreted with in the firm in between the available financial information of many number of years; which portrays either increase or decrease in the financial performance. The perfection and effectiveness of the analysis mainly depends upon the preparation of accurate and effectiveness of the financial statements. It is subject to the availability of fair presentation of data in the financial statements. Current liabilities are nothing but short term financial resources or payable in short span of time within a year. The super quick assets are nothing but the current assets which can be more easily converted into cash to meet out the quick liabilities. Under the capital structure ratios, the composition of the capital structure is analysed only in the angle of long term solvency of the firm. All profitability ratios are normally expressed only in terms of (%). The return is normally expressed only in terms of percentage which warrant the expression of this ratio to be also in percentage.

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