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Profitability Ratios
Principles of Accounts · Secondary 4 · Financial Analysis and Decision Making · 4.º Período

Profitability Ratios

Students will calculate and interpret profitability ratios such as gross profit margin, mark-up, and return on equity.

MOE Syllabus OutcomesMOE POA Syllabus 7087 - 6.1 ProfitabilityMOE POA Syllabus 7087 - 6.3 Financial analysis

About This Topic

Students will calculate and interpret profitability ratios such as gross profit margin, mark-up, and return on equity.

Key Questions

  1. How do we measure a business's ability to generate profit?
  2. What does the gross profit margin indicate about pricing strategy?
  3. How can a business improve its return on equity?