(a)[2]
State the formula used to calculate each of these ratios: Gross profit margin and Profit margin.
(b)[2]
Suggest two reasons that might account for the rise in the gross profit margin when 2024 is compared with 2023.
(c)[2]
Suggest two reasons that could account for the fall in profit margin when 2024 is compared with 2023, even though the gross profit margin increased.
(d)[5]
Explain with reasons whether you agree or disagree with Khaled’s view of his business’s liquidity position. Justify your answer by referring to both ratios.
(e)[4]
Explain two additional reasons why Khaled may struggle to make valid comparisons with comparable businesses.