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.
- Gross profit margin
- 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.
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