HomeIB Business ManagementTopic 3.5

Profitability and liquidity ratio analysis

Topic 3.5 teaches students to calculate and interpret profitability ratios (gross profit margin, net profit margin) and liquidity ratios (current ratio, acid test). Students evaluate business performance using ratio analysis and compare results with industry benchmarks.

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IB Business Management · Topic 3.5

Sub-topics in Topic 3.5

3.5.1Profitability ratios3.5.2Liquidity ratios3.5.3Interpreting and comparing ratios