(a)[2]
State the formula used to calculate each ratio below: Gross profit margin Profit margin
(b)[2]
Suggest two reasons which could explain the increase in the gross profit margin comparing 2024 with 2023.
(c)[2]
Suggest two reasons which could explain the decrease in profit margin comparing 2024 with 2023, despite the increase in the gross profit margin.
(d)[5]
Explain with reasons whether or not you agree with Khaled’s view of his business’s liquidity position. Justify your answer by commenting on both ratios.
(e)[4]
Explain two other reasons why Khaled may find it difficult to make valid comparisons with similar businesses.