Electric Game Plc’ is an energy company, providing energy throughout the West Midlands. During the year ended 31 March 2021, Electric Game acquired all the operations of ‘Squid energy’ together with all their customers as the company went into Administration. Below are the income statements, extracts from the statements of financial position and extracts from the notes to the financial statements for ‘Electric Game plc’. for the financial years ended 31 March 2022 and 31 March 2021.

	2022		2021
	£m		£m
Revenue	3,462		2,394
Cost of sales	2,570		1,591
Gross profit	892		803
Administration expenses	201		264
Operating profit	691		539
Finance income	1		1
Finance expense	100		84
Profit before tax	590		454
Income tax	42		32
Profit for the year	548		422
Non-current assets	2,400		1,640

	2022		2021
	Number		Number
Employees: average during the year	406		254
Number of subscribers (millions)	862		556

1. Calculate the following ratios for 2022 and 2021 for ‘Electric Game plc’

1. Gross profit percentage
2. Operating profit percentage
3. Profit before tax percentage
4. Profit after tax percentage
5. Non-current asset turnover
6. Revenue per employee
7. Operating profit per employee
8. Any other ratios you consider to be relevant to an assessment of the profitability of ‘Electric Game plc’

2. Evaluate the changes in profitability for ‘Electric Game plc’ between 2021 and 2022, analysing reasons for the changes in profitability in 2022.

Answer rating: 100% (QA)

Ratio Calculations for Electric Game plc 2022 2021 Profitability Ratios Gross Profit Percentage 2022 Gross profit Revenue 100 892m 3462m 100 258 2021 ... View the full answer