Profitability

• Gross Profit Margin

• Operating Profit Margin

• Return on Capital Employed (ROCE)

Key Users:

• Shareholders

• Governments

• Competitors

• Employees

Liquidity

• Current Ratio

• Acid-test Ratio

Key Users:

• Shareholders

• Lenders

• Suppliers

Financial Efficiency

• Payables Days

• Receivables Days

• Inventory Turnover

Key Users:

• Shareholders

• Lenders and Creditors

• Competitors

Gearing Ratios

Capital gearing is the balance between the capital a company owns and its funding using short-term or long-term loans, investors and lenders use this to assess risk.

Low Gearing

• Company has less debts

• Company has more equity financing (shares, retained profits, capital)

High Gearing

• Company has more debts (loans or bonds)

• Company has less equity