As a senior investment analyst, you have been analysing financial results of CRetail Ltd for the last few years. The following table comprises a summary of the financial results for CRetail Ltd.

1. Comment on the sales growth of CRetail Ltd for the last three years. Discuss any issues of concern.
2. Consider the gross profit growth and gross margin for CRetail Ltd in 2015. Discuss any issues of concern.
3. If you were part of the CRetail management in 2016 facing a takeover offer, how would you persuade shareholders to reject the takeover offer and continue to give you - the management - the chance to improve the company's performance? You may wish to refer to the Du Pont analysis in your answer.

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Income statement Sales Other income COGS Gross profit EBIT Interest expense NPBT Tax expense NPAT continuing operations Profit from discontinued operations NPAT attributable to shareholders Pro forma NPAT Sales growth Gross profit growth Gross margin Net profit margin Du Pont analysis Net profit margin Asset turnover Leverage ROE CRETAIL 2016 34212.0 91.8 (26 160.8) 8 143.0 850.9 (98.9) 752.0 (215.6) 536.4 627.2 1163.6 786.6 3.62% 4.60% 23.53% 1.57% 1.57% 3.75 times 2.54 times 14.91% 2015 33018.0 71.9 (25 305.3) 7784.6 1027.2 (55.2) 972.0 (285.9) 686.1 (48.2) 637.9 692.0 2.33% 25.15% 23.36% 2.08% 2.08% 3.58 times 2.70 times 20.09% 2014 32 266.8 0.0 (24 059.5) 8 207.3 888.1 (13.5) 874.6 (258.1) 616.5 0.0 616.5 576.0 19.43% 10.94% 25.44% 1.91% 1.91% 3.57 times 2.21 times 15.10%