Accounting (AS)·Ratios & interpretation · NSSCAS 4.1.1

Efficiency & investment ratios

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Six power ratios in one lesson: how fast the stock turns, how quickly customers pay, how slowly you pay suppliers — and the three ratios investors read before buying a company's shares. Every one of them appears in Paper 1, where you calculate to two decimal places and then comment on what the answer means. Learn the exact Annexe A formulas here, with fully worked Namibian examples.

What you'll learn in this lesson

By the end you should be able to (NSSCAS Accounting (AS) 4.1.1):

  • calculate and analyse efficiency ratios: rate of inventory turnover, trade receivables collection period, trade payables payment period
  • calculate and analyse investment ratios: earnings per share, price earnings, dividend per share
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Efficiency & investment ratios · NSSCAS Accounting (AS) · namstudy