Page 262 - Microsoft Word - 00 IWB ACCA F7.docx

Chapter 21

Example 1 cont.

Solution

20X6 20X5
Gross profit margin

Gross profit/Revenue
(7,300/27,000) 27.0% (6,900/24,000) 28.8%

Operating profit margin

Operating profit/Revenue
(5,000/27,000) 18.5% (5,000/24,000) 20.8%

Asset turnover
Revenue/capital employed

(27,000/ 0.9 (24,000/ 1.0
times times
(19,100 + 11,000)) (16,200+8,000))

Return on capital employed

Operating profit/capital employed
(5,000/ 16.6% (5,000/ 20.7%

(19,100 + 11,000)) (16,200+8,000))

256