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accounting & finance
unit 4
Ratios
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Cards (2)
Profit Ratio
Relates company's profits
to
business activity
how much profit
is
earned
for
every dollar
of
revenue
earned
allows
it's
performance
to be
compared
with
other firms
and
previous
performance
from
other periods
ROR on Assets
Relates company's
profits
to the
assets
its
using to earn that profit
allows comparisons
with
alternative investments
of those
resources
evaluate company performance against
that in
previous
periods