Page 55 - Stakis Consolidated Teaching Note
P. 55
The ROCE in both instances is very small in relation to the
amount of capital employed. There is a marked increase
between 1991 and 1992 but, in the short term, a better
rate of return would have been provided from a bank
deposit account.
The shares could not be regarded as having been a good
investment at this time, although there were indications
that the company was moving in the right direction.
2 : Gross Profit Ratio (GPR)
Gross Profit
GPR = ___________________ X 100
Total Sales Revenue
1991 1992
GPR 26407 30157
_______ _______
171455 154133
= 15.4% = 19.6%
