Contents
Unit 6: Business Decision Making
Module objectives
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Objectives
Creating and interpreting financial forecasts
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Creating and interpreting financial forecasts
Viability of a business – ratios analysis
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Viability of a business – ratios analysis
Threats and 'what if' scenarios
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Threats and 'what if' scenarios
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Creating a contingency plan
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Creating a contingency plan
Case Study: Contingency Planning
Module 6: Creating, interpreting and analysing financial forecasts

Viability of a business – ratios analysis

 

Business viability is about how likely the business is to survive and be successful.

One way to analyse this is by using ratios. As we have already seen, ratio analysis can show how a business performs over time and also how it performs relative to other businesses.

Ratio analysis

Click here to remind yourself of how you can use ratios to analyse a company's performance:

 

Using ratios

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