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youre very welcome this recording which were going to focus for week seven on ec 220. so where we left it in week five before we had reading week was we got halfway through roughly financial statement analysis a core area around interpreting a set of financial statements and its often called ratio analysis for anyone who did leave insert accounting might call it that and we started to look at some of the key areas in a set of financial statements and we said theres five main areas youre going to be looking at profitability efficiency liquidity gearing and investment and we talked through in week five what each of those key areas are and we start to introduce particularly in terms of profitability we work through how profitable companies calculating margins how profitable companies with respect are relative to sales and we also looked at the return a company earns which is return on capital employed a return on shareholders funds sometimes known the second one there is return on eq