... ratio analysis; performance, activity, liquidity and gearing. And the ratios are; o Return on Capital Employed o Gross Profit Margin o Net Profit Margin o Gearing Ratio o Current Ratio o Debt Collection Period With these six ratios it covers every area of ratio analysis and will give an accurate record of the financial performance of the company over the year and thus making it easier to compare the two years. The figures will be displayed in Euros where appropriate. Performance Ratios: These help to show how well a business is doing. They tend to focus on profit, capital employed and turnover. 1.Return on Capital Employed:The return on capital employed, otherwise known as R.O.C.E for short, measures the return on capital invested in the business. Net Profit before interest and tax R.O.C.E X 100 Total Capital Employed *(in millions) € Euros 31.6 1998 = X 100 = 10.3 % 307.8 55.7 1999 = 592.4 X 100 = 9.4 % Although a small ...

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