The following abridged information is taken from Ted Baker’s Report and Accounts 2007/08 about 6 months before the recession began.

Required Imagine that you work for a firm of investment analysts. Your manager asks you to conduct a financial analysis to help clients with shares in Ted Baker PLC monitor their investments. Calculate the following ratios for 2007/08 and 2006/07 showing all your workings. In each case, explain the purpose of the ratio and interpret your results. Include brief comments on any change in the risks and rewards to investors over the period:
(a)Dividend net

(a) Dividend yield

(a) Earnings per share

(a) Price earnings

(a) Return on equity

(a) Return on capital employed

(a) Operating profit margin

(a) Capital turnover.

Transcribed Image Text:

Group Income Statement for 52 weeks ended 26 January 2008 Revenue Cost of sales Gross profit Distribution costs Administration expenses Other operating income Operating profit Finance income Finance expenses Share of profit of jointly controlled entity Profit before tax Income tax expense Profit for the period Attributable to: Equity shareholders of the parent Minority interests Profit for the period Note 52 weeks ended 52 weeks ended 26 January 2008 27 January 2007 '000 '000 142,231 125,648 (59.560) (51,986) 82,671 73.662 (48,320) (41,404) (17.844) (16,645) 5.635 4.436 22,142 20,049 292 192 (387) (191) 10 0 22.057 20,050 (6,815) (5.634) 15.242 14.416 15.196 14,421 46 (5) 15.242 14.416