Financial Ratio Analysis - Profitability - Additional Question 1

Profitability - Additional Question 1

Here is part of the profit and loss account for Marks & Spencer for two years. Compare these results by calculating the ratios named below and discuss what you find.

  1. Gross profit margin
  2. Operating profit margin
Consolidated profit and loss
for the year
Marks & Spencer plc
  2002 2001
  £m £m
Turnover 8,135.4 8,075.7
Cost of sales -6,862.5 -7,154.3
Gross profit 1,272.9 921.4
Operating expenses -629.1 -480.9
Operating profit 643.8 440.5

Did you get this?

Why not try question 2?

Additional notes are available on advanced profitability or you can move on to the Rate of Return section.

Section Index | Previous | Next | Next Section | Section Map