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The summarised annual financial statements for Eskdale Plc are given below for the year to 31 December 2017, and three years later for the year

The summarised annual financial statements for Eskdale Plc are given below for the year to 31 December 2017, and three years later for the year to 31 December 2020. The financial statements show that Return on Capital Employed stood at 10.8% in 2017 and 5.6% in 2020. By analysing the drivers of earnings based on the financial statement data provided, you should explain why profitability has declined and the key drivers which have caused this. The average tax rate for both years on financing activities is 27%.

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