Question 1
By carrying out Ratio Analysis, one can gain insight regarding the firm’s strengths and weaknesses. List and describe the THREE (3) categories of ratio analysis
(10 marks)
Profitability => What is the ratio analysis for this about => provide the potential formula
for the category => provide examples of how it could tell the company’s performance.
Gross margin vs Net margin => Gross on the direct expense, net on indirect expense (net margin will inform on overall expense control for business)

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