Course review
Review each learning objective in this topic, then open its concept explanation or question set.
Learning objective
• Calculate and interpret gross profit margin, profit margin, and return on capital employed (ROCE) • Profitability ratios evaluate efficiency in turning sales, costs, and capital into profit
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Evaluate possible strategies to improve profitability ratios • Strategies include raising prices, reducing costs, changing product mix, improving productivity, and better asset use
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Calculate and interpret current ratio and acid test or quick ratio • Liquidity ratios measure ability to meet short-term liabilities
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Evaluate possible strategies to improve liquidity ratios • Strategies include tighter credit control, reducing stock, delaying payments, selling assets, and raising finance
Start with the concept explanation, then practise to create mastery evidence.