Across
- 6. It is a rigorous test and gives a better picture of the short term financial position of the firm
- 7. This ratio indicates the speed with which the amount is collected from debtors and bills receivables
- 8. This ratio is used to assess the firm's ability to meet its short term obligations on time
- 10. This ratio indicates the speed with which inventory is rotated into revenue from operations
- 12. This ratio measures the extent of revenue from operations absorbed by the cost of revenue from operations and operating expenses
- 13. If this ratio is 15 percent, then the operating ratio will be 85 percent
- 14. This ratio is calculated to ascertain the soundness of long term financial policies of the firm and a high ratio is risky for long term lenders
Down
- 1. This ratio enables a long term lender to know whether the firm will earn sufficient profits to pay its interest charges regularly
- 2. A low ratio indicates underutilisation of working capital
- 3. This ratio indicates the proportion of total assets funded by the shareholders
- 4. This ratio measures how efficiently the capital employed in the business is being used
- 5. It indicates the number of days or months taken by trade receivables on an average to get converted into cash
- 9. This ratio measures the margin of profit available on revenue from operations
- 11. This ratio helps to determine the overall efficiency of business operations