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Where the ratios come from

Where the ratios come from

Flowchart showing operating profit from the income statement, equity and non-current liabilities from the statement of financial position, and how they combine to form capital employed, ROCE and gearing ratio

Ratio analysis uses figures from financial statements to compare business performance over time, against competitors and against benchmarks. In this topic, the two key ratios are ROCE and gearing.

Ratio analysis Lesson

  1. A Level
  2. /Business
  3. /Ratio analysis

Step-by-step lessons on Edexcel A Level Business Ratio analysis. Each one builds up to exam-style questions. Build up your knowledge of the core business functions first, then focus revision time on the strategy and evaluation-heavy topics, since these carry the most marks.

Lessons