Set out below are ratios relating to three different businesses. Each business operates within a different industrial
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Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector.
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Ratio Operating profit margin Sales to capital employed Average inventories turnover period Average settlement period for trade receivables Current ratio Required: State, with reasons, which one of the above is: (a) a holiday tour operator (b) a supermarket chain (c) a food manufacturer. A plc 3.6% 2.4 times 18 days 2 days 0.8 times B plc 9.7% 3.1 times N/A 12 days 0.6 times C plc 6.8% 1.7 times 44 days 26 days 1.5 times
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Company A Possible industry Supermarket chain Reasons Relatively low operating profit margin 36 comp...View the full answer
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