Business Ratio Analysis.

... Ratio Analysis Ratios allow the thorough investigation of the business, in this case Philips. By comparing years from 1998 to 2002 it enables more informed judgements to be made and also allows key figures such as profit and turnover to be put into context. Ratio analysis can assist in making a decision about whether Philips have the financial backup to support the console and achieve success. Liquidity Ratios These are ratios that help to measure the ability of Philips to settle debts in the short term. It will help to give an indication about how well Philips will be able to cope with sudden changes in demand for example obtaining more stock. And also helps to show how well they will be able to borrow and pay loans in order to support the console through promotion and marketing. (2002) Current Ratio = Current assets 362, 300 = 1.75 --------------------------------------- Current liabilities 206,

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