Additional Question 8
In addition to the two rate of return ratios you calculated for question 7, calculate the following two ratios and comment on your findings:
- return on fixed assets ratio
- return on working capital ratio
You are given the following additional information to help you:
| for the year | 2002 | 2001 |
|---|---|---|
| Creditors: Amounts falling due within one year | 1,750.8 | 1,981.6 |
Did you get this?
Fixed assets are being dramatically better managed by M&S now since that ratio has increased three-fold and the return on working capital ratio has also improved, but this improvement is more in line with the other rate of return ratios and general profitability, by just about doubling from 2001 to 2002.
You can move on to the next question.
Section Index | Previous | Next | Next Section | Section Map