3.6 Efficiency ratio analysis (HL only)

3.6 Efficiency ratio analysis (HL only)

Top tip!

Business Management is an interrelated discipline so students should strive to make links between the various topics of the subject. For example, although ratio analysis is used to measure the financial performance of a business, the growing emphasis on providing a sustainable future for the planet and its people means that businesses are increasingly being evaluated for their ethical performance.

John Elkington (1997) proposed to evaluate businesses from the perspective of the “ triple bottom line”:

  • Planet
  • People
  • Profits

Elkington's triple bottom line model is also related to corporate social responsibility (CSR).

Read more about Elkington's triple bottom line here.

InThinking Business Management resources (HL only)

Click the hyperlinks below to access the InThinking resources for this particular section of the IB Business Management syllabus.

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