Activity 7 - Vodafone ROTA
Let's repeat these calculations, for Vodafone this time and see what we find for them.
| Consolidated profit and loss account | 31 Mar 2002 | 31 Mar 2001 |
|---|---|---|
| £m | £m | |
| Profit before interest and taxation | -12,694 | -6909 |
| Total Fixed Assets | 153,462 | 154,208 |
| Total Current Assets | 9,438 | 18,182 |
Fill in this table for Vodafone:
| ROTA For Vodafone | |||
|---|---|---|---|
| 31 March 2002 |
Profit before Interest and Tax
Total Assets |
____________ |
= _____% |
| 31 March 2001 |
Profit before Interest and Tax
Total Assets |
____________ |
= _____% |
Did you get this?
Our conclusions? Vodafone's interest and tax situations are not a major factor here but Vodafone's main problem is its operating costs - they eat up all and more of its operating profit. We need to keep an eye on this because they can't sustain this situation for too many years.
You can now attempt an additional question or move on to the next topic.
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