1. One profitability ratio is Return On Capital Employed (ROCE) and its formula is net operating profit divided by total assets minus current liabilties. One liquidity ratio is current ratio and its formula is current assets divided by current liabilities 2. Analysis of accounts is the skill of identifying trends in a business' financial transactions to gain a better understanding of what is taking place. 3.One internal user of accounts is business owners who use accounts to keep track of their business and one external user of accounts is banks who use accounting to determine if there's a high or low risk factor lending to a particular business. 4.Two disadvantages of ratio analysis are it reduces comparatiability and it gives information regarding prior data and not future data. 5. Profitability ratio is important as it shows the overall efficiency of the business in generating revenue.
Hi sir today was my Business studies olevel exam paper 1 , i watched your videos yesterday and it became very helpful for me for todays exam. Thank you very much for this Sir! May god bless you
1. Profitability - ROCE . Profit over capital employed ( total assets - current liabilities) 2. Liquidity- acid test / liquid ratio . Current assets - inventories over current liabilities. The answers are given in form of ratio - y : 1 Analysis of accounts is a result of finding out the business performances by using ratio analysis where accounting information are expressed in term of percentage and proportion. Internal use - managers : they need it for decision making . External - banks : to lent money
9:30 that formula for Net Profit Margin isnt a percentage, it should be multiplied by 100 otherwise it wont be a percentage. Is this a typo or am i not understanding something?
why does the igcse and o level business studies revision guide 2nd edition have the ROCE formula written as profit/capital employed times 100. Where are the supposed deducted current liablities
all ur vids are informative and on point but however, when i read "net operating profit" this term is no where to be found in the previous video's which are related to the analysis of accounts, which are incoming statement, in the sequence, after gross profit, there's something called "net profit", and then retained profit, so, when u say "net operating profit", are u referring to "Net profit" in "incoming statement" ?
1. Gross profit margin: (Revenue - total costs divided to revuenue) x 100 2. It is a detailed information of the transitions done by a business 3. Employees: To have an ensurence of their work. So that they get paid Other businesses: So that they know how is doing their cometence. They compare them to their accounts. 4. It is needed skill to be done It generates costs. 5. So that investors keep investing or to get bank loans
@@sensebusiness He worked hard on those videos so I don't think he'd do that. Plus you can help him and students by shouting his channel out in your vids :)
whatever ya'll may say mans got his dedication even though his batter was about to die he didn't stop
I have my mocks tomorrow and I want to cry but these vids are saving me
1. One profitability ratio is Return On Capital Employed (ROCE) and its formula is net operating profit divided by total assets minus current liabilties.
One liquidity ratio is current ratio and its formula is current assets divided by current liabilities
2. Analysis of accounts is the skill of identifying trends in a business' financial transactions to gain a better understanding of what is taking place.
3.One internal user of accounts is business owners who use accounts to keep track of their business and one external user of accounts is banks who use accounting to determine if there's a high or low risk factor lending to a particular business.
4.Two disadvantages of ratio analysis are it reduces comparatiability and it gives information regarding prior data and not future data.
5. Profitability ratio is important as it shows the overall efficiency of the business in generating revenue.
Hi sir today was my Business studies olevel exam paper 1 , i watched your videos yesterday and it became very helpful for me for todays exam. Thank you very much for this Sir! May god bless you
Great teaching - happy to be a teacher and providing Commerce related subjects completely free
1. Profitability - ROCE . Profit over capital employed ( total assets - current liabilities)
2. Liquidity- acid test / liquid ratio . Current assets - inventories over current liabilities. The answers are given in form of ratio - y : 1
Analysis of accounts is a result of finding out the business performances by using ratio analysis where accounting information are expressed in term of percentage and proportion.
Internal use - managers : they need it for decision making .
External - banks : to lent money
i have my igcse exam tomorrow! thanks a lot
Good luck
How'd it go? (I'm one year late but shhhh).
how'd it go? (i'm two years late but shhhh)
How'd it go? (i'm three years late but shhh)
How'd it go? (I'm nearly four years late but shhhh).
9:30 that formula for Net Profit Margin isnt a percentage, it should be multiplied by 100 otherwise it wont be a percentage. Is this a typo or am i not understanding something?
why does the igcse and o level business studies revision guide 2nd edition have the ROCE
formula written as profit/capital employed times 100. Where are the supposed deducted current liablities
Please can you attempt to Activity 26.3 of the same chapter, Analysis of Account for me please
Thanks
Thank you so much your videos are really helpful
all ur vids are informative and on point but however, when i read "net operating profit" this term is no where to be found in the previous video's which are related to the analysis of accounts, which are incoming statement, in the sequence, after gross profit, there's something called "net profit", and then retained profit, so, when u say "net operating profit", are u referring to "Net profit" in "incoming statement" ?
yes he is , net operating profit is just the same as net profit
capital employed = total assets - non current liabilities 7:25
its shareholder's funds + non current liabilities
1. Gross profit margin: (Revenue - total costs divided to revuenue) x 100
2. It is a detailed information of the transitions done by a business
3. Employees: To have an ensurence of their work. So that they get paid
Other businesses: So that they know how is doing their cometence. They compare them to their accounts.
4. It is needed skill to be done
It generates costs.
5. So that investors keep investing or to get bank loans
Hi can you please do videos on business A level??
final exam tommorow
thanks for the information
idk why but your vid has 4,123 views but it only has 59 likes
Should be more right 😄
@@sensebusiness no. it alrdy too much
Yes@@sensebusiness
he forgot operating profit margin
Good teaching resource
Hi, I visited your channel, you too have some good videos. Can I upload them on my channel? To help students please.
@@sensebusiness He worked hard on those videos so I don't think he'd do that. Plus you can help him and students by shouting his channel out in your vids :)