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Roce and return on sales

MHMohammed hashim8y ago
Hello there I would really appreciate if you could help me with this question The companies last two years of finincial results are as follows Year 1 year 2 (Most recent) '000. '000 Sales. 5250. 5320 Less expenses Wages. 2500. 2200 Maintenance 80. 70 Repairs. 260. 3320 Directors Salary. 150. 160 Directors Bonus. 15. 18 Other costs (Including dep)1200. 1180 Net profit. 1045. 1327 Other information Year 1. Year 2 Avg capital Employed (000)13000. 12000 No of costumer 150000 140000 What's the return on sales (net profit percentage) and the return on capital employed to one decimal place Return on sales %. ROCE % A). 19.9. 27.0 B). 19.9. 8.0 C). 5.0. 8.0 D). 5.0. 7.0 If you are not allowed to answer this as it is a mock question about, please give me some hints please or tell me the logic Thank you
John MoffatJohn MoffatTutor8y ago#1
Net profit percentage is net profit as a % of sales. ROCE is net profit as a % of capital employed. I do suggest that you watch my free lectures on this. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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