Page 435 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

23 Analysis of accounts

Interpreting financial statements

(gross profit/revenue) ×
Gross profit margin
100%

Measuring business (profit/revenue) × 100%
performance Net profit margin

(profit/capital employed)
Return on capital employed
Analysing financial × 100%
statements

Current assets / current
Current ratio
liabilities
Measuring business
liquidity
(current assets −
Acid test ratio
inventories) /
current liabilities

© Cambridge University Press 2014 IGCSE Business Studies Section 5 – Mind maps 5