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Words: 1,550 | Submitted: Tue Jul 24 2007
... years of the company, this is done by calculating certai9n ratios to show if the company was successful. Included in these ratios are the Return on Capital Employed, Gross Profit Margin, Net Profit Margin, Gross Profit on Cost, Asset Turnover, Stock Turnover and many more. All these ratios are divided into different group such as Profitibility, Rate of Return, Liquidity, Asset usage, Stock, debt and credit, Gearing and Investor. Below I have calculated a few of these ratios needed. http://www.bized.co.uk/compfact/ratios/index.htm Profitability Gross profit Margin. (%) Gross Profit x100 = % Turnover GPM 2001 (%) 921.4 x100 = 11.41% 8075.7 GPM 2002 (%) 1272.9 x100 = 15.65% 8135.4 This ratio is used to analyse the trading profitability of the business. A higher gross profit margin percentage is desired, as it shows that the business is trading more profitably. http://www.bized.co.uk/compfact/ratios/profit3.htm http://beginnersinvest.about.com/cs/investinglessons/l/blgrossmargin.htm The results of the ratio analysis show that Marks and Spencer have a relatively constant gross profit margin %, with a slight increasing trend. In 2001 the gross profit ...
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