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Profitability and Liquidity

BTEC EnterpriseC3-3aVocationalLesson packSubscription
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Set it as homework or classwork and every answer is marked as pupils go, with feedback on what they got wrong. The scores go straight into your mark book, so you can see who needs help before the next lesson.

  • 8 questions
  • 21 marks
  • about 30 minutes
  • marked instantly

Question types: short answer, multiple choice, true or false, extended answer.

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About this resource

BTEC Enterprise Component 3 (B5) — calculating and interpreting gross profit margin, net profit margin, the current ratio and the liquid capital ratio, and suggesting actions to improve them.

19 slides.

Lesson outline

  1. Do Now — Retrieval
  2. Misconception Check — Profit ≠ Cash
  3. Hinge Check — Profit or Cash?
  4. Where Do the Ratios Come From?
  5. I Do — Gross Profit Margin (GPM%)
  6. We Do — Calculate GPM%
  7. I Do — Net Profit Margin (NPM%)
  8. Hinge Check — Does More Revenue Mean More Profitable?
  9. You Do — Calculate GPM% and NPM%
  10. Now for Liquidity: Current Ratio & Liquid Capital Ratio
  11. I Do — Current Ratio & Liquid Capital Ratio
  12. Hinge Check — Is a High Current Ratio Always Good?
Unit bundleComponent 3 · Promotion and finance for enterprise
Part of: Component 3 · Promotion and finance for enterprise: the whole unitEvery resource in the unit in one zip.

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