Question
Two firms, Sharkers and Seals have the following financial ratios for the past year Ratio Sharkers Seals Gross profit margin 40% 42% Net profit margin
Two firms, Sharkers and Seals have the following financial ratios for the past year
| Ratio | Sharkers | Seals |
| Gross profit margin | 40% | 42% |
| Net profit margin | 15% | 21% |
| Return on Investment (ROI) | 10% | 18% |
| Return on Equity (ROE) | 9% | 16% |
Sharkers Firm was established two years ago and Seals 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. (10 points)
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Commodity Finance Principles And Practice
Authors: Weixin Huang
1st Edition
1781371938, 978-1781371930
