Calculate the ROCE and the ROE of L'Oral and Carlsberg for 2020. You should include retirement benefits

Calculate the ROCE and the ROE of L'Oréal and Carlsberg for 2020.

You should include retirement benefits in the net debt and other longterm liabilities in working capital. There has been no amortisation or impairment of goodwill. The income tax rate is 25% for L'Oréal and 24% for Carlsberg. You should consider that, for L'Oréal, equity affiliates and participating interests correspond to a 9.4% financial interest in Sanofi, and for Carlsberg they correspond to minority interests in various beer businesses.

2020 L'Oréal (in

€ bn)

Carlsberg (in DKR bn)

NET SALES 28.0 58.5

− Cost of sales (7.5) (30.1)

= GROSS MARGIN 20.5 28.4

− Selling and marketing costs (8.7) (15.4)

− General and administrative costs (5.6) (3.5)

− R&D costs (1.0) -

± Other operating income and expense (0.7) (0.2)

+ Income from associates 0.4 0.3

= RECURRING OPERATING PROFIT 4.9 9.6

± Non-recurring items - (0.2)

= OPERATING PROFIT 4.9 9.4

− Financial expense (0.1) (0.8)

+ Financial income - 0.4

= PROFIT BEFORE TAX 4.8 9.0

− Income tax (1.2) (2.2)

− Minority interests - (0.8)

NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 3.6 6.0 L'Oréal Carlsberg Goodwill 10.5 53.1 2020 L'Oréal (in

€ bn)

Carlsberg (in DKR bn)

Other intangible fixed assets 3.4 12.9 Tangible fixed assets 3.2 26.3 Equity in associated companies and financial stakes 9.6 4.2 Other non-current assets - 3.3 NON-CURRENT ASSETS (FIXED ASSETS)

26.7 99.8 Inventories 2.7 4.6 Trade receivables 3.5 3.7 Other operating receivables 2.0 2.6 Trade payables (4.8) (16.6)

Other operating payables (5.1) (17.1)

OPERATING WORKING CAPITAL

(1)

(1.7) (22.8)

NON-OPERATING WORKING CAPITAL (2)

0.0 0.0 WORKING CAPITAL (1 + 2) (1.7) (22.8)

SHAREHOLDERS' EQUITY GROUP SHARE 29.2 39.3 Minority interests in consolidated subsidiaries

- 4.1 Retirement benefits 1.0 2.9 Other long-term liabilities 0.3 8.5 Medium- and long-term borrowings and liabilities

- 29.3 Bank overdrafts and short-term borrowings 0.9 1.0 2020 L'Oréal (in

€ bn)

Carlsberg (in DKR bn)

Cash and equivalents 6.4 8.1 NET DEBT (4.2) 33.6 AppendixLO1