Financial Ratio Analysis - Profitability - Additional Question 1 answer

Profitability - Additional Question 1 answer

Solution

Marks & Spencer Profitability 2002 2001
Gross profit margin 15.65% 11.41%
Operating profit margin 7.91% 5.45%

M&S has had a successful year in 2002 as its rates of gross and operating profitability have increased. Whilst turnover has increased only slightly over the two year period, profits have grown more quickly.

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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