... distribution expenses have constituted 15.12 % in 2001, 13.26 % in the year 2002 and 17.62 % in the year 2003 of the sales revenue.This is more or less in proportion to the sales in the respective years. Administrative expenses have also followed the same trend of increase according to the sales in the respective years. The financial ratios of Klaxon Limited for the year 20X1, 20X2 and 20X3 have been calculated and evaluated using the data provided in the balance sheet and income statements and also evaluated in relation to Industry Average PROFITABILITY RATIOS: Formula 20X1 20X2 20X3 Industry Average Gross margin Gross profit X 100 Sales 0.44 (307/701) 0.43 (359/837) 0.48 (500/1050) 0.40 Operating margin NPBIT X100 Sales 0.14 (97/701) 0.16 (135/837) 0.15 (160/1050) 0.18 Return on Capital Employed Operating ProfitX100 Capital Employed 0.13 (97/737) 0.19 (135/709) 0.14 (160/1184) 0.20 * Klaxon's Gross profit margin has increased to 48% in the year 2003 from 44 % in year 2001 and 43% in the year 2002, which shows the company is taking into account the market and ...

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