CAIE IGCSE Business Studies 5.5.1 Profitability
Practise calculating and interpreting profit margins and ROCE, then using income statement data to judge financial performance.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- calculate gross profit margin, profit margin or ROCE from income statement extracts
- interpret profitability ratios to judge performance against forecasts or competitors
- outline ways to improve profit margin using price, cost or sales changes from the case
5.5.1—Profitability question 1
GTB is a business which operates in the tertiary sector．It owns 5 cafés selling food and drinks． The business uses social media as its method of promotion．The Finance Manager，Moeen，is analysing GTB＇s financial statements．An extract is shown in Table 2．1．He is considering ways to improve GTB＇s profit margin．Moeen knows there are other users that are interested in the accounts of a business．
Table 2.1
（c）Outline two ways GTB could improve its profit margin．
Way 1：
Way 2：
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