Ratio

3. Calculations measuring how efficiently a business converts sales into profit.
4. Percentage of sales revenue remaining after all operating expenses are deducted.
6. Profit made from trading before deducting overhead expenses (Sales minus Cost of Sales).
9. Using financial ratios from statements to assess a business's health and performance.
12. Percentage of sales revenue remaining after deducting the direct cost of sales.
15. Any individual or group with a direct interest in the performance and activities of a business.
16. Assets Short-term resources owned by a business expected to turn into cash within one year.
18. Measures short-term debt repayment ability without relying on selling inventory.
19. Total income generated from selling goods or services over a given period.
20. Stock of Goods owned by a business that are held for resale or production.
22. Measures how efficiently a business generates profit from the total capital invested in it.

1. Compares short-term assets to short-term liabilities to assess immediate financial health.
2. Direct costs involved in producing or buying the goods sold during a period.
5. Calculations measuring a business's ability to pay back its short-term debts on time.
7. The state where a business cannot afford to pay its short-term debts as they fall due.
8. Finance available for day-to-day operations.
10. Long-term resources owned and used by a business for more than one year (e.g., machinery).
11. Short-term debts that must be paid back within one year (e.g., trade payables).
13. Indirect operational costs incurred to run a business (e.g., rent, utilities, salaries).
14. Final profit remaining after all operating expenses, taxes, and interest are deducted.
17. Total long-term money invested in a business (Non-Current Liabilities plus Total Equity).
21. Liabilities Long-term debts payable after more than one year (e.g., bank loans, mortgages).
23. The ease with which a business can convert assets into cash.