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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:

  1. return on fixed assets ratio
  2. return on working capital ratio

You are given the following additional information to help you:

for the year20022001
Creditors: Amounts falling due within one year1,750.81,981.6

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.

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