| A | B |
|---|
| ratio which looks at the solvency position of the business | CURRENT RATIO |
| a more acurate picture of the solvency position of the business | ACID TEST RATIO |
| Cash/Bank | MOST LIQUID ASSET |
| Stock | LEAST LIQUID ASSET |
| Ratio which analyses profit % after expenses | NET PROFIT MARGIN |
| Ratio which analyses sales minus cost of sales | GROSS PROFIT MARGIN OR % |
| A profitability ratio - is the business a worthwhile investment? | RETURN ON CAPITAL EMPLOYED |
| A ratio which looks at how efficient the company's credit control is. | DEBTOR COLLECTION PERIOD |
| Ratio which gives an indication of how efficiently the business is using its assets | ASSET TURNOVER |
