Ratio Analysis - critical analysis and discussion with proper use of concepts and principles.

1 Profitability Ratio Types Gross Profit Gross Profit Margin = x 100% Sales 2019('000) 4,107,063 x 100% 18,047,528 2020('000) 3,583,666 X 100% 19,178,449 =22.757% = 18.686% Operating Profit Margin Profit before Interest and Tax x 100% Sales 1,036,507 x 100% 18,047,528 419,294 X 100 % 19,178,449 Net Profit Margin Profit after tax X 100% Sales =5.743% 721,355 X 100% 18,047,528 =2.186% 4,658 x 100% 19,178,449 Return on Equity 100% Profit after tax Shareholders' Funds =3.997 721.355 x 100% 20,894,541 = 0.024% 4,658 X 100% 15,609,929 Profit after tax Return on assets = x 100% Total Assets =3.452 721,355 x 100% 76,727,093 =0.030 4,658 x 100% 69,908,435 =0.007% Return of Capital Employed (ROCE) Profit before interest and tax x 100% Shareholder's Funds =0.940 1,036,507 X 100% 20,894,541 419,294 x 100% 15,609,929 =4.961 =2.686