5.5 Analysis of Accounts

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5.5 Analysis of Accounts: Cambridge IGCSE Business 0264 lesson

5.5 Analysis of Accounts is one of the 5 lessons in Unit 5 Financial Information and Decisions of Cambridge IGCSE Business 0264, for first examination in 2027. It is an editable PowerPoint of 36 slides written against syllabus sections 5.5.1, 5.5.2 and 5.5.3, with 1 learning check and an exit ticket. Also suitable for Cambridge IGCSE (9-1) Business 0774 and Cambridge O Level Business 7081, which share the same content.

Profitability and liquidity as concepts, then each ratio on its own slide: gross profit margin, profit margin, ROCE, current ratio and acid test, with calculation practice and interpretation. Users of accounts get a slide per group, from owners to government and employees. The case study is Brightway Stores, where students calculate two years of margins and ROCE and decide whether a bank should lend. No embedded video.

Slide from lesson 5.5 of Cambridge IGCSE Business 0264: Analysis of Accounts

Learning objectives

Taken from the objectives slide of the lesson, which follows the syllabus wording.

5.5.1 Profitability

  • concept of profitability
  • calculate and interpret the following profitability ratios: gross profit margin, profit margin, return on capital employed (ROCE)

5.5.2 Liquidity

  • concept of liquidity
  • calculate and interpret the following liquidity ratios: current ratio, acid test ratio

5.5.3 Users of accounts

  • users of accounts and ratio analysis: internal, e.g. owners (sole traders, partnerships, shareholders), managers, employees
  • users of accounts and ratio analysis: external, e.g. suppliers, government, lenders/banks
  • how users of accounts may use financial information to help make decisions, e.g. whether to lend to or invest in a business
  • limitations of using accounts and ratio analysis

What is in the lesson

The running order below is the deck as sold. Every lesson in the course follows the same shape: learning objectives, content slides with the real business examples, a learning check after each section, a case study with questions, key takeaways and an exit ticket. A teacher answer key (PDF), with model answers to every learning check, case question and exit ticket, is included when you buy the unit or the complete course.

Slide by slide (36 slides)
  1. Title slide
  2. Learning Objectives
  3. Learning Objectives
  4. Why Analyse Accounts?
  5. What is Profitability?
  6. What is Liquidity?
  7. What is a Financial Ratio?
  8. Importance of Financial Ratios
  9. Types of Financial Ratios
  10. Profitability Ratios
  11. Gross Profit Margin (GPM)
  12. Profit Margin
  13. Return on Capital Employed (ROCE)
  14. Calculating Profitability Ratios
  15. Liquidity Ratios
  16. Current Ratio
  17. Acid Test Ratio
  18. Interpreting Profitability Ratios
  19. Interpreting Liquidity Ratios
  20. Calculating Liquidity Ratios
  21. Improving Profitability
  22. Improving Liquidity
  23. Users of Accounts: Internal and External
  24. Owners' and Shareholders' Interests
  25. Managers' Interests
  26. Suppliers' Interests
  27. Banks' Interests
  28. Government's Interests
  29. Employees' Interests
  30. Learning Check – Users
  31. Limitations of Financial Ratios
  32. Case Study: Brightway Stores
  33. Analysing Brightway Stores
  34. Brightway Stores: ROCE Analysis
  35. Key Takeaways
  36. Exit Ticket

Where it fits

Weeks 33 and 34 of the 0264 scheme of work and pacing guide, which gives the course 46 weeks with a mock in week 41. Previous lesson: 5.4 Statement of Financial Position. Next lesson: 6.1 Economic Issues. All 28 lessons: Cambridge IGCSE Business 0264.

How to buy

The lesson on its own: 5.5 Analysis of Accounts on TES. The unit: Unit 5 Financial Information and Decisions. The whole course in one download: 0264 Complete Bundle. Lesson 1.1 is free with its answer key if you want to see the format first.