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3.5 assessing competitiveness - Coggle Diagram
3.5 assessing competitiveness
interpretation of financial statements
statement of comprehensive income
statement of financial position
new ones
capital employed
requires SOCI and and SOFP
non current liabilities+total equity= capital employed
all the available finance a business has
internal finances (share capital+retained profit(total equity))
external finances (long term loans or non current liabilities)
return on capital employed
how much of capital employed has beenr eturned as operating profit
operating profit/capital employed x 100
gearing ratio
how much finance has come from debt/liabilities
non current liabilities/capital employed x100
a figure about 50% suggests the business relies more on debt than equity
human resources
labour productivity
output per time period/number of inputs x 100
labour turnover
percentage of staff who leave the business. can be motivation indicator
no of staff leaving/total staff employed x100
ratio analysis