pptx, 3.39 MB
pptx, 3.39 MB

In this lesson I cover:

Profitability:

  • The concept and importance of profitability
    Liquidity:
  • The concept and importance of liquidity
  • How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios:
  • Gross profit margin
  • Profit margin
  • Return on Capital Employed
  • Current ratio
  • Acid test ratio
    Why and how accounts are used:
  • Needs of different users of accounts and ratio analysis
  • How users of accounts and ratio results might use information to help make decisions, e.g. whether to lend to or invest in the business

I have also created a task students to help students remember the main outcomes of this lesson.

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