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 explain your answers. Thank you.

EXHIBIT 2.9 CALLAWAY GOLF COMPANY Consolidated Statements of Operations (In thousands, except per share data) Year Ended December 31, 2016 2015 2014 Net sales $ 871,192 $843,794 $886,945 Cost of sales 486,181 486.161 529,019 Gross profit 385,011 357,633 357,926 Selling expenses 235,556 228,910 234,231 General and administrative expenses 71,969 68,567 61,662 Research and development expenses 33,318 33,213 31,285 Total operating expenses 340,843 330,690 327,178 Income from operations 44,168 26,943 30,748 Interest income 621 388 438 Interest expense (2,368) (8,733) (9,499) Gain on sale of investments in golf-related ventures 17,662 Other income (expense), net (1,690) 1,465 (48) Income before income taxes 58,393 20,063 21,639 Income tax (benefit) provision (132,561) 5,495 5,631 Net income 190,954 14,568 16,008 Less: Net income attributable to noncontrolling interests 1,054 Net income attributable to Callaway Golf Company $ 189,900 $ 14,56 $ 16,008 Earnings per common share: Basic $ 2.02 $ 0.18 $ 0.21 Diluted $ 1.98 $ 0.17 $ 0.20 Weighted-average common shares outstanding Basic 94,045 83,116 77,559 Diluted 95,845 84,611 78,385 EXHIBIT 2.10 SDZUCKER AG Statement of Comprehensive Income 1 March 2016 to 28 February 2017 million Notes 2016/17 2015/16 Revenues (6) 6,476.0 6,387.0 Change in work in progress and finished goods inventories and internal costs capitalized 141.1 - 175.3 Other operating income (8) 98.7 122.5 Cost of materials (9) -4,323.2 -4,091.8 Personnel expenses (10) -841.7 -831.5 Depreciation (11) -285.9 -283.9 Other operating expenses (12) -859.1 -905.1 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 2.11 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) 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 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) EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Continuing operations Note Before exceptional items fm Exceptional items (Note 4) m Total m Revenue 2 55,917 55,917 Cost of sales (52,899) (116) (53,015) Gross profit (loss) 3,018 (116) 2,902 Administrative expenses (1,734) (261) (1,995) Profits/(losses) arising on property-related items (4) 114 110 Operating profit (loss) 1,280 (263) 1,017