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Analysis of financial performance and position

2.2 Profitability ratios

The main profitability ratios are:

Gross profit margin (GP%)

Operating profit margin (OP%)

Return on capital employed (ROCE)

EBITDA

TUTOR GUIDANCE

Use TYU 1 from Chapter 19 to illustrate any calculations you deem to be particularly

important. More time should be spent on the discussion of the meaning and causes
for fluctuations in the ratios.

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