SuperExamSuperExam
Search papers…
Menu
DashboardBrowse papersRevision notesBooksSavedRevision packsMy progressAchievementsAI TutorMessages

Unlock worked solutions

Step-by-step answers by examiners. From €5/mo.

Try Premium free →
← Business notes
Edexcel IAL·Business·IAL Business

Financial Analysis & Ratios

12 min read

Profitability and liquidity ratios, and using ratios to assess business performance.

Ratios interpret financial statements to judge performance.

Profitability ratios

  • Gross profit margin =gross profitrevenue×100= \frac{\text{gross profit}}{\text{revenue}}\times100=revenuegross profit​×100.
  • Net profit margin =net profitrevenue×100= \frac{\text{net profit}}{\text{revenue}}\times100=revenuenet profit​×100.

Higher margins = more profit per £ of sales.

Viewing only

This content is free to read on superexams.com and cannot be printed or downloaded.

Read the full note — free

Create a free account to read this note in full. Every free account gets 2 complete revision notes — no card needed.

Sign up free →Log in

More Business notes

Enterprise, Entrepreneurs & Objectives

Markets & Market Research

The Marketing Mix & Strategy

Business Ownership & Stakeholders