Strategies to Improve Profitability & Liquidity Ratios
Interpreting & Analyzing the Ratios
Stock Turnover Ratio
sold/average stock
Stock turnover (number of days) = average stock/cost of goods sold x 365
Debtor Days Ratio
days ratio (# of days) = debtors/total sales revenue x 365
Creditor Days Ratio
Creditors days ratio (# of days) = creditors/cost of goods sold x 365
Gearing Ratio
capital/capital employed x 100
Strategies to Improve Efficiency Ratios
Relationship Between Investment, Profit, & Cash Flow
Working Capital Cycle
Cash Flow Forecast
Investment Appraisal
Payback Period
Average Rate of Return
Net Present Value (HL)
Budgets
Cost & Profit Centres
Variance
Strategic Planning
Cheryl
Cheryl achieved a perfect 45 in the May 2023 IB exams and is now a Melbourne International Undergraduate Scholar studying Commerce at the University of Melbourne. At university, Cheryl actively participates in consulting engagements, case competitions, and marketing-related projects, gaining practical experience and developing versatile skills.
This IB resource is getting huge attention Understand workforce planning with Business HL Unit 2 Notes. Covers recruitment, leadership, motivation, and performance
Recommended For Focused Revision Sessions A complete Internal Assessment example for both SL and HL Business Management students. This IA demonstrates structured