A-Level Business: ROCE and Gearing, Which Gym Is in Better Shape?
Students calculate ROCE and gearing for two gyms, read them as a lender and an investor, test a loan against a share issue and advise on financing an expansion.
A-Level-Business-Ratio-Analysis-Gyms-Student
A-Level-Business-Ratio-Analysis-Gyms-Teacher
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Edexcel A level Business, Theme 3: all 24 lessons for £13, about 54p a lesson. Eight original cases with learner pages, a teacher guide and full worked answers, as PDF and editable Word.
Original cases, not exam board questions. Not endorsed by any exam board.
What students do
- Match capital employed, ROCE and gearing to their meanings
- Calculate capital employed, ROCE and gearing for two gym businesses
- In pairs, read the ratios as a bank manager and as an investor
- Test how a loan or a share issue changes the ratios, name limitations of ratio analysis and advise on financing
What the teacher gets
- A lesson plan for about 55 minutes of tasks, with a shorter 45-minute version. Allow longer in the timetable for handing out and feedback
- Worked answers for every calculation, with the conventions used
- Indicative guidance for the written advice. It is not an exam board mark scheme and carries no marks or grades
- Editable Word versions of both files, so you can change the businesses or the figures
Specification
Edexcel A level Business (9BS0), Theme 3, section 3.5.2 Ratio analysis: calculating gearing and return on capital employed, interpreting ratios to make business decisions and the limitations of ratio analysis. Checked against the Pearson specification, Issue 1, September 2014. The businesses and every figure are fictional and the questions are original. This is not a Pearson resource, and the lesson has not yet been tested in a classroom.
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Three full lessons on gearing and ROCE: Tarnbeck Creamery pack.