| |P |L |C | |Sales |£200,000 |£120,000 |£180,000 | |Profit before interest |£12,000 |£7,200 |£5,400 | |Capital mobile |£50,000 |£60,000 |£45,000 | | | | | | |Return on capital employed |24% |12% |12% | | operational profit margin |6% |6% |3% | |Asset turnover |4 times |2 times |4 times | L and C subscribe to to bring their performance up to Ps fruit L by improving addition management and C by improving profit margins. 2. A Limited and B Limited Return on capital employed (ROCE) A is earning a high school ROCE, despite a debase direct margin. because A must be achieving a high asset turnover! rate. This conclusion is backed up by the high decided asset turnover. Gross margin A earns a higher crude margin, and therefore is trading more fruit unspoilty with customers. They could be charging higher prices to customers, but the earlier payment of creditors may ungenerous that they are being charged lower add prices. Operating profit margin A earns a lower margin, therefore the prefer gained at the gross profit train is lost. A incurs higher overhead payments than B. Rented premises? (they do postulate lower fixed assets). Staff be? Advertising costs? (It is possible that A has higher selling prices [note higher gross margin], which need more...If you indirect request to get a full essay, order it on our website: OrderCustomPaper.com
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