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Profitability Ratios (Financial Ratios Explained)

Level:: AS, A-Level

Board:: AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 22 Mar 2021

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Profitability ratios look at the returns earned by a business both in terms of its trading activities (sales revenue) and also how much is invested in earning those returns (capital employed). This revision video introduces the four main profitability ratios.