WORKBOOK UNIT 3.6

Financial condition of not being able to pay debts.

Match the concept with its formula

• Gearing Ratio

• Trade payables / Cost of sales × 365

• Debtor days ratio

• Accounts receivable / Total credit revenue × 365

• Creditor days ratio

• Non current liabilities / Capital employed × 100

• Average stock / Cost of sales

• Stock Turnover ratio

The money a company spends on long-term physical assets, expected to provide value over several years.

The meaning of the acronym R O I is:

Is all the money that comes into a business or person.

Day-to-day expenses required to keep a business running, including all costs related to producing and delivering goods or services.

It shows how many times a business sells and replaces its inventory over a specific period, indicating how efficiently inventory is managed.

The legal process that may follow insolvency.

It shows the proportion of a company’s capital that comes from debt, measuring financial risk.

A key financial metric used to evaluate the efficiency or profitability of an investment