Refer to the income statements presented in Exhibits 2.9, 2.10, 2.11, 2.12, and 2.13 for Callaway Golf Company, Sudzucker AG, Melia Hotels International S.A., Thai Airways Limited, and Tesco PLC.

Required:

a. Calculate gross profit margin (gross profit/revenues) and operating profit margin (operating profit/revenues) for each of these companies for the most recent year presented. If a particular ratio cannot be calculated, explain why not.

b. Is it valid to compare the profit margins calculated in part (a) across these companies in assessing relative profitability? Why or why not?

Please show ALL calculations and provide explanations. Thank you. I need both a and b answered.

EXHIBIT 2.9 CALLAWAY GOLF COMPANY Consolidated Statements of Operations (In thousands, except per share data) Year Ended December 31, 2015 2014 2016 $ 871,192 486 181 305.011 235,566 71,969 33318 340,843 $843,794 486,161 357,633 228,910 68,567 33213 330,690 26,943 380 (8,733) $886,945 529,019 357926 234, 231 61,652 31 285 327,178 30,748 438 (9.490) 44,168 621 Net sales Cost of sales Gross profit Selling expenses General and administrative expenses Research and development expenses Total operating expenses Income from operations Interest income Interest expense Gain on sale of investments in golf-related ventures Omer income (expensel.net Income before income taxes Income tax (benefit) provision Net income Less: Not income attributable to noncontrolling interests Net income attributable to Callaway Golf Company.... Earnings per common share: Basic Diluted Weighted average common shares outstanding Basic Diluted (2368) 17.602 (1690) 58 393 (132 561 190.354 (48) 21,639 1465 20,063 5,495 14,568 -5.631 16,008 1,054 $189.000 $ 14.56 $ 16,000 $0.21 $ 202 $ 1.38 S0.18 $0.17 $0.20 83. 116 94,045 95.845 77.559 78,385 34,611 EXHIBIT 2.10 #1 SUDZUCKER AG Statement of Comprehensive Income 1 March 2016 to 28 February 2017 Emillion Revenues Change in work in progress and finished goods inventories and internal costs capitalized Other operating income Cost of materials Personnel expenses Depreciation Other operating expenses Result from companies consolidated at equity Result from operations Financial income Financial expense. Earnings before income taxes Taxes on income Net earnings of which attributable to Sudzucker AG shareholders of which attributable to hybrid capital of which attributable to other noncontrolling interests Earnings per share (0) Notos 2016/17 2015/16 (6) 6,476.0 6,387.0 1 (7) 141.1 -175.3 (8) 98.7 122.5 (9) 43232 4.091.8 (10) -841.7 831.5 -285 9 -283.9 (12) -8591 -905.1 (13) 35.0 55.0 440.9 2769 (14) (15) (15) 50.7 596 -846 -109.8 2267 407.0 -94.9 45.8 (16) (18) 180.9 108.9 312.1 213.6 13.4 85. 18.4 536 (18) 1.05 0.53 EXHIBIT 2.11 MELIA HOTELS INTERNATIONAL SA Consolidated Profit and Loss Account (Thousands of Operating income Expenses Stall costs Other costs EBITDAR Leases EBITDA Amortization and impairments Negative consolidation difference EBIT/Operating profit Exchange results Bank financing Other financial results Financial result Results of entities measured by the equity method RESULT BEFORE TAXES Corporate income tax CONSOLIDATED RESULT A) Attributed to the parent company B) Attributed to minority interests Note 2016 2015 7.1 1,801,962 1,738,207 72 (2227831 (214,823) 73 (489.707) (463,321) 74 (640,167) (623 253) 449,305 436,810 201 (163727) (143 783) 6.1 285,578 293,078 75 (111,452) (129,130) 7.6 1.621 175,746 163,9448 4.676 10,409 (42,121) (70,703) 7,701 1.756 7.7 (29,743) (58,542) 12 1,585 (3.787) 147.588 101.619 (44.640) (61.103) 102,348 40.515 8 100.693 35,975 157 2255 4541 EXHIBIT 2.12 THAI AIRWAYS INTERNATIONAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES Excerpt from Statements of Comprehensive Income For the year ended December 31, 2016 Unit: Baht CONSOLIDATED FINANCIAL STATEMENTS Note 2016 2015 Revenues Revenues from Sales or Revenues from Services Passenger and excess baggage 148,060,309,853 152.487.688,487 Freight 17.963,345,043 18,089,435,210 Mail 615,301,646 562,089.100 Other activities 11,673,542694 11,588,144,224 Total Revenues from Sales or Revenues from Services 178,312,499,436 182.727,357,021 Other Income Interest income Gain on foreign currency exchange Other income Others 204 313,537 684,970,854 331,925,784 3,511,781,612 7.22 Total Other Income Total Revenues 2,244.421.749 3,133,706,140 181,446,205,576 6.020.259,832 9,863,967,228 192,591,324,249 Expenses Fuel and oll Employee benefit expenses Termination benefit-Mutual Separation Plan Flight service expenses Crew expenses Aircraft maintenance and overhaul costs Depreciation and amortisation expenses Lease of aircraft and spare parts Inventories and supplies Selling and advertising expenses Insurance expenses Impairment loss of assets Impairment loss of aircraft Other expenses Finance costs Share of (profit) loss of associates 45,335,913,346 7.23 29,668,433,554 7.24 427,122,345 20.817.778,532 5,352,676,217 16,986,636 235 17.990,828.445 9,871,541,115 8,150,778.440 9,404,409.793 569,961,467 410,161,132 7.25 3,217,748,674 7.26 8,841036,057 5,339.100.550 579,446,279 63,242,833,143 30,678,620,518 3,381.266,844 20,474,091,602 5,312,866.969 10,310,630,041 19.132.779,761 3,940,000 810 7,828,716,942 9.499,174,198 613.969,442 281,315,202 11.876,432.369 9.359,059 811 5,897,739,737 (131,877.381) EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Before Exceptional items exceptional items (Note 4) Note Cm Em Continuing operations Total Cm 2 Cost of sales Gross pros 55017 52.8901 (116) 85,017 53.015 2,992 11.96 (1.734 060) Proting on propertyredens Opering prot) 1.200 114 (263) 110 1,017 EXHIBIT 2.11 MELIA HOTELS INTERNATIONAL S.A. Consolidated Profit and Loss Account (Thousands of ) Note 2016 2015 Operating income 7.1 1,801,962 1,738,207 Expenses 7.2 (222,783) (214,823) Staff costs 7.3 (489,707) (463,321) Other costs 7.4 (640,167) (623,253) EBITDAR 449,305 436,810 Leases 20.1 (163,727) (143,733) EBITDA 6.1 285,578 293,078 Amortization and impairments 7.5 (111,452) (129,130) Result from companies consolidated at equity (13) 35.0 55.0 Result from operations (14) 440.9 276.9 Financial income (15) 50.7 59.6 Financial expense (15) -84.6 -109.8 Earnings before income taxes 407.0 226.7 Taxes on income (16) -94.9 -45.8 Net earnings (18) 312.1 180.9 of which attributable to Sdzucker AG shareholders 213.6 108.9 of which attributable to hybrid capital 13.4 18.4 of which attributable to other noncontrolling interests 85.1 53.6 Earnings per share () (18) 1.05 0.53 EXHIBIT 2.12 THAI AIRWAYS INTERNATIONAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES Excerpt from Statements of Comprehensive Income For the year ended December 31, 2016 Unit: Baht CONSOLIDATED FINANCIAL STATEMENTS Note 2016 2015 Revenues Revenues from Sales or Revenues from Services Passenger and excess baggage 148,060,309,853 152,487,688,487 Freight 17,963,345,043 18,089,435,210 Mail 615,301,846 562,089,100 Other activities 11,673,542,694 11,588,144,224 Total Revenues from Sales or Revenues from Services 178,312,499,436 182,727,357,021 Other Income Interest income 204,313,537 331,925,784 Gain on foreign currency exchange 684,970,854 3,511,781,612 Other income-Others 7.22 2,244,421,749 6,020,259,832 Total Other Income 3,133,706,140 9,863,967,228 Total Revenues 181,446,205,576 192,591,324,249 Expenses Fuel and oil 45,335,913,346 63,242,833,143 Employee benefit expenses 7.23 29,568,433,554 30,678,620,518 Termination benefit-Mutual Separation Plan 7.24 427,122,345 3,381,266,844 Flight service expenses 20,817,778,532 20,474,091,602 Crew expenses 5,352,676,217 5,312,866,969 Aircraft maintenance and overhaul costs 16,986,636,235 10,310,630,041 Depreciation and amortisation expenses 17,990,828,445 19,132,779,761 Lease of aircraft and spare parts 9,871,541,115 8,949,988,818 Inventories and supplies 8,150,778,440 7,828,716,942 Selling and advertising expenses 9,404,409,793 9,499,174,198 Insurance expenses 569,951,467 613,989,442 Impairment loss of assets 410,161,132 281,315,202 Impairment loss of aircraft 7.25 3,217,748,674 11,876,432,369 Other expenses 7.26 8,841,036,057 9,359,059,811 Finance costs 5,339,160,850 5,897,739,737 Share of (profit) loss of associates 579,446,279 (131,877,881) Total Expenses 182,863,622,481 206,707,627,516 Profits (losses) before Income Tax Expense (1,417,416,905) (14,116,303,267) Tax income 7.27 (1,464,238,106) (1,069,374,783) Profit (loss) for the Year 46,821,201 (13,046,928,484) Negative consolidation difference 7.6 1,621 EBIT/Operating profit 175,746 163,948 Exchange results 4,676 10,409 Bank financing (42,121) (70,708) Other financial results 7,701 1,756 Financial result 7.7 (29,743) (58,542) Results of entities measured by the equity method 12 1,585 (3,787) RESULT BEFORE TAXES 147,588 101,619 Corporate income tax (44,640) (61,103) CONSOLIDATED RESULT 102,948 40,515 A) Attributed to the parent company 8 100,693 35,975 B) Attributed to minority interests 15.7 2,255 4,541