Unit 3: Finance and accounts

3.5 Profitability and liquidity ratio analysis

§3.5 in three short videos. The first two take the formulas one at a time — profitability, then liquidity — with the worked examples from the Oxford book on the board as they are said. The third is a conversation: what a business actually does when a ratio comes back bad. Watch them in order, or jump to the one you need.

Videos in this lesson

▶
1:08
Video 1 · class
Profitability ratios
Gross profit margin and profit margin
Annelore
▶
1:37
Video 2 · class
Liquidity ratios
Current ratio and acid test ratio
Ms. Nour
▶
1:09
Video 3 · podcast
Fixing a bad ratio
Strategies to improve profitability and liquidity, and what each one costs
Sam & Eliza