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By the end of this chapter, you should be able to:
➔ calculate and interpret the profitability and efficiency ratios: gross
profit margin (GPM), net profit margin (NPM), and return on capital
employed (ROCE)
➔ examine possible strategies to improve the above profitability and
efficiency ratios
➔ calculate and interpret the liquidity ratios: current ratio and
acid test ratio
➔ discuss possible strategies to improve the above liquidity ratios