This lesson is written by Sarah Hilton for Revisionstation and contains a comprehensive student worksheet and a teacher PowerPoint
These are the topics covered in this lesson:
a) Calculate:
• profitability (gross profit margin and profit for the year* / operating profit margin)
• liquidity (current and acid test ratios)
• gearing ratio
• return on capital employed (ROCE).
b) Interpret ratios to make business decisions.
c) The limitations of ratio analysis.
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