Page 360 - SBR Integrated Workbook STUDENT S18-J19
P. 360
Chapter 22
Financial performance measures
2.1 Ratios
The purpose of financial reporting is to provide investors, lenders and other creditors
with information that will help them to make decisions about providing resources to
an entity.
Calculating ratios may help these users to better understand an entity’s financial
performance and position and so may help when making investment decisions.
Short term
Profitability liquidity and
efficiency
Ratios
Long term
liquidity (capital
structure)
The SBR exam is unlikely to focus on the calculation of ratios,
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