Provide Executive Summary, Introduction and Conclusion based on Profitability Ratio analysis of Boral Limited as per the findings below:

PROFITABILITY RATIO:

Return on capital employed measures the return earned on the money invested in the business. Every investor needs a return on their investment for the risk they take to invest in the company. Therefore, investors use ROCE when making investment and financing decisions.

In 2017, Boral Limited saw 5.8 % since the cost of capital was lower than the return generated by borrowing money. As a result, the ROCE in 2018, 2019 and 2020 remained almost identical, ranging from 7.9%, 11.2% and 7.4%, respectively.

However, from the financial year 2021, Boral Limited saw a negative in ROCE and as low as -4.9% and -3.4%, which shows that ROCE is below the cost of capital and Boral Limited company needs to use invested capital effectively.

ROE provides a return on the capital employed by the company's owners. In 2017 and 2018, Boral Limited provided a return on equity at minimal rates of 2.95% and 2.38%, respectively. This means that Boral Limited's shareholder is profiting from their equity, and Boral Limited is doing well. However, Boral Limited saw a drastic change in the ROE from the financial year 2020 onwards.

Boral Limited saw as low as -32.36% in ROE in 2020. The return on equity is determined by how much revenue a company generates and how well it can cover up its expenses to give profits to its equity holders. Regardless, Boral Limited experienced huge costs and a net loss of $ 1.47 billion and could not cover its expenses; thus, it could not generate profit for its equity shareholders. As a result, Boral Limited continued to experience negative ROE in the years 2021 and 2022.

Therefore, Boral Limited cannot generate profits/return to its equity as it cannot cover its expenses. As a result, the company is running into loss and would highly discourage future investors.

Net Profit Margin:

Net profit margin explains the percentage/margin earned by Boral Limited about the revenue generated in that financial year. The net profit margin and return on equity go hand in hand. If the company cannot create a return on equities, it cannot generate profit.

The net profit margin reduced from the financial year 2018 and observed the highest loss, with -25.56% in 2020. It means that for every dollar of loss incurred by the company, there is a -25.56% loss. The negative net profit margin is due to the high expenses of Boral Limited in the year 2020, with $7.2 billion. However, it made equivalent revenue of $5.74 billion, similar to 2018 and 2019. In this case, Boral Limited could not control its expenses which exceeded its revenue.

Similarly, although Boral Limited can reduce expenses by almost $ 4 billion in 2021 and 2022, it cannot generate enough revenue to cover up even the $3.2 billion loss, thus negative net profit. Therefore, Boral Limited Company may only sometimes be insolvent as it may need help to cover the variable or operating costs of the company.