Interpreting profitability ratios

The new Q2022 AAT Level 3 ā€˜Financial Accounting Preparing Financial Statementsā€™ includes interpreting profitability ratios.

In the latest issue of PQ magazine top tutor, Teresa Clarke, shows you how to calculate the profitability ratios and how to interpret them, see:

She looks at the gross profit margin, net profit margin, expense over revenue percentage, and return on capital employed. Check it out on page 27.

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