Analyzing productivity and profitability of company


Q1) The following is a historical performance of company. Describe changes during four years given in the chart. Analyze productivity and profitability of company.

In % 2005 2006 2007 2008
ROIC 23.8 45.7 48.6 24.9
Pre-Tax ROIC 40 71.7 76.2 38.6
AVG Tax Rate 40.5 36.3 36.3 35.6
Op. Margin 10 9.8 10.4 6.5
Capital Return 4.02 7.35 7.33 5.96
Gross Margin 26.5 24.6 25.5 23.8
SGA 15.5 14 14 16.1
Depreciation 1.00 0.9 1.1 1.2
Op WC/Sales (0.16) (0.14) (0.12) (0.12)
Fixed Assets/Sales 0.04 0.03 0.03 0.03
Other Assets/Sales 0.37 0.25 0.23 0.26

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Accounting Basics: Analyzing productivity and profitability of company
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