Gearing
Gearing in a Nutshell Gearing measures the proportion of a business’s capital that comes from long-term borrowing rather than shareholders’ equity. A gearing ratio above 50% means the company relies more on…
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8 min
Spec point: A-Level AQA – 3.5.2 Analysing Financial Performance
Every note that covers this specification point.
Liquidity
Liquidity in a Nutshell Liquidity refers to how easily a business can convert its assets into cash to meet short-term financial obligations. A highly liquid business holds enough cash or near-cash assets…
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10 min
Profitability
Profitability in a Nutshell Profitability measures how effectively a business turns its revenue into profit after all costs have been deducted. It is not the same as profit itself: a business earning…
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10 min