Ratio analysis 1: profitability, ef ficiency, and performance
. Big Times plc is presenting the annual results. Sales of £600m have been achieved in the current year, compared to sales of £450m in the previous financial year. Profits this year stand at £96m compared to previous year profits of £90m. Shareholders will be pleased with this increase in profitability compared to the previous year.

. Financial statement figures and ratios must always be used in conjunction with one another and never in isolation.

. It's the profitability % that matters, not the profit itself.