Ellen owns three gift shops for which the following ratios have been prepared. The shops are all situated in large shopping centres in Melbourne, Sydney and Brisbane.

a. In your own words explain the meaning of each of the three ratio listed.
b. What is the interrelationship between the ratios? Explain.
c. Assess what the ratio results reveal about the sections of the gift market to which each shop is catering.
d. Assesse which shop is the best performer. Explain why you have chosen a particular measure from those above to reach this conclusion.

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Ellen's Gift Shops Return on assets Profit margin Asset turnover Melbourne 9.0% 2.6% 3.4 times Sydney 6.3% 3.3% 1.9 times Brisbane 10% 8% 1.3 times