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Two firms, Hunters and Venus, have the following financial ratios for the past year Ratio Newman Oldie Gross profit margin 40% 42% Net profit margin

Two firms, Hunters and Venus, have the following financial ratios for the past year

Ratio

Newman

Oldie

Gross profit margin

40%

42%

Net profit margin

15%

21%

Return on Investment (ROI)

10%

18%

Return on Equity (ROE)

9%

16%

Hunters was established two years ago and Venus Firm has been in operation since 1990.

Required:

Offer any two possible solutions to discuss the differences in the profitability ratios of these two firms.

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