Cambridge 0452 and 0985 · Sub-topic 6.1

Calculation and understanding of accounting ratios

The 4 skills the syllabus asks for, the slips that cost marks, and how our teachers explain it.

What students must be able to do

Work out each ratio in the syllabus list from figures in the accounts, with the correct unit.
Use only the formulas printed in the syllabus appendix.
2027-2029: ten ratios including mark-up and inventory turnover in days.
2026: eight ratios listed.

Official wording: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), page 18; Cambridge IGCSE Accounting 0452: syllabus for examination in 2026 (Version 2, December 2025), page 16. See all sources.

How our teachers teach it

Calculation is the mechanical half, so aim for no lost marks. Learn the printed formulas exactly and write the numerator and denominator before calculating. For example, gross margin is gross profit divided by revenue: RM40,000 on RM100,000 is 40%. State the unit every time, whether a percentage, a ratio, times or days, because a bare number loses a mark. Commenting on the result belongs to 6.2.

If any of these slips sound familiar, we can help. A teacher can mark your child's answers on calculation and understanding of accounting ratios line by line and show where the marks go. Book a trial class.

How the wording changed for 2027

The 2026 syllabus lists eight ratios: gross margin, profit margin, ROCE, current ratio, liquid ratio, rate of inventory turnover, and trade receivables and trade payables turnover in days. The 2027-2029 syllabus lists ten by adding mark-up and inventory turnover in days, and states the printed formulas are the only ones accepted in answers.

Where it is examined

Calculation and understanding of accounting ratios can appear in either paper, as a short question or as part of a longer task. Cambridge bases both papers on the whole syllabus. See the guides to Paper 1 and Paper 2 for the format.

Sources: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), pages 9, 22. See all sources.

Practise it

Key terms: Capital employed, Mark-up, Margin, Turnover
Skills: How to calculate mark-up and margin
Worked examples: ratio analysis
Practice questions: ratios
One-to-one Cambridge 0452 tuition

Calculation and understanding of accounting ratios: questions

Where can students see the exact formulas?

They are in the appendix of the official syllabus. We link both versions on our ratio pages and the Sources page.

Does the 0985 (9 to 1) syllabus cover calculation and understanding of accounting ratios too?

Yes. For examinations in 2027, 2028 and 2029 the 0985 subject content is word-for-word the same as 0452, so this sub-topic is identical on both. Only the reporting scale differs.

Which syllabus numbering should I use?

It is numbered 6.1 in both syllabuses: page 18 of the 2027 to 2029 syllabus and page 16 of the 2026 syllabus.

Get help with calculation and understanding of accounting ratios

The trial class works through Cambridge IGCSE Accounting questions with a teacher, so you see how the paper is approached. One-to-one and online, from RM75/hr.

Book a Trial Class

One-hour paid trial · Same-day reply