The outgoing Senior Finance Manager was often heard saying that “Working Capital only affects short-term finance”. Do you agree or disagree? Give reasons and support for your answer
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
You have been shortlisted for an interview for the role of Senior Manager
question 1: The outgoing Senior Finance Manager was often heard saying that “Working Capital only affects short-term finance”. Do you agree or disagree? Give reasons and support for your answer. (within 400words)
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