TASK B Calculate the Operating Profit % and the Profit/Loss After Tax % for 2020 and 2019 for Rolls Royce Holdings Plc. Comment on the ratios you have calculated and their changes over the two years. Ratio Formula (1 mark) Calculations (3 marks) Total Marks 2020 final answer (1 mark) 2019 final answer (1 mark) Operating Profit/Loss % 2020 (5 marks) 2019 (5 marks) Profit/Loss After Tax % 2020 (5 marks) 2019 (5 marks) Up to 2.5 marks for relevant comment explaining each ratio and changes between the two years. Maximum of 5 Marks Consolidated income statement For the year ended 31 December 2020 Notes 2 Revenue Cost of sales 12 Gross (loss)/profit Commercial and administrative costs Research and development costs Share of results of joint ventures and associates Operating loss (Loss)/gain arising on acquisition and disposal of businesses 3 Loss before financing and taxation 2020 m 11,824 (12,034) (210) (808) (1,254) 191 (2,081) (14) (2,095) 2019 Em 16,587 (15,645) 942 (1,128) (770) 104 (852) 139 (713) 3 13 28 2 4 Financing income Financing costs Net financing costs 4 67 (882) (815) 252 (430) (178) Loss before taxation 5 Taxation Loss for the year 5 (2,910) (259) (3,169) (891) (420) (1,311) Attributable to: Ordinary shareholders Non-controlling interests Loss for the year Other comprehensive expense Total comprehensive expense for the year (3,170) 1 (3,169) (265) (3,434) (1,315) 4 (1,311) (1,013) (2,324) 6 Loss per ordinary share attributable to ordinary shareholders: Basic 6 Diluted 6 Underlying earnings per ordinary share are shown in note 6 (52.95)p (52.95)p (23.70p (23.70)p 6 21 Payments to ordinary shareholders in respect of the year: Pence per share 6 Total 1.6p 87 Underlying (loss)/profit before taxation 5 2 (3,958) 583