Advanced Profitability - Additional Question 5 answer
| Marks & SpencerProfitability | 2002 | 2001 |
|---|---|---|
| Profit before interest and taxation % | 3.91% | 1.63% |
| Profit before taxation % | 4.13% | 1.80% |
| Profit for the year % | 1.88% | -0.07% |
The results from question 1 were:
| Gross profit margin | 15.65% | 11.41% |
| Operating profit margin | 7.91% | 5.45% |
We can see that in every respect M&S has performed much better in 2002 than it did in 2001. We might ask the question now, though, of whether 2001 was a bad year for the business? After all, a good year could be the result of sorting out a bad year. It can, of course, mean that M&S really has just had a good year!
Try question 6.
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