Practice questions:
The following figures have been extracted from the financial statements of two companies.
Calculate the main profitability ratios for both companies and suggest reasons for any differences you find.
|
|
Adams Ltd
|
Evelyn Ltd
|
| |
£ |
£ |
| Capital employed |
281,000 |
596,000 |
| Profit before interest and tax |
29,500 |
41,500 |
|
Gross profit
|
71,400
|
156,200
|
|
Sales
|
354,900
|
706,260
|