Question
Q3.3 - Duncan Tweedy wishes to invest some money in one of two private companies. He has obtained the latest financial statements for Byrne Ltd
Q3.3 - Duncan Tweedy wishes to invest some money in one of two private companies. He has obtained the latest financial statements for Byrne Ltd and May Ltd prepared for internal purposes. As part of his decision making process he has asked you to assess the relative
profitability of the two companies, based on the following ratios.
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| Byrne Ltd | May Ltd |
| ROCE | 21.5% | 32.1% |
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| Gross profit percentage | 59% | 67% |
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| Operating profit percentage | 25% | 36% |
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Prepare a report for Duncan Tweedy that: (a) Uses each ratio to comment on the relative profitability of the companies, and (b) Concludes, with reasons, which company is the more profitable.
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Computational Intelligence In Economics And Finance Volume II
Authors: Paul P. Wang, Tzu-Wen Kuo
2007th Edition
3540728201, 978-3540728207
