Pearson Edexcel International A Level Business (335) 2 Ratio analysis
a) Calculate:
• profitability (gross profit margin and profit for the year 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.
Written by Sarah Hilton for Revisionstation
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