Question $1$

See Appendix $1$ Next Plc Financial Accounts

a$)$ Calculate the following ratios for $2023,2022$ and $2021$:

$$ Net Profit Margin

$$ Gross Profit Margin

$$ Debtor $($Receivable$)$ Days

$$ Creditor $($Payable$)$ Days

$$ Return on Capital Employed

$$ Net Asset Turnover

$($Please write the detail equations$)$

b$)$ Based on the ratios calculated above comment on the financial performance of Next plc over three years.

c$)$ Discuss how the company has reduced leverage $($borrowing$)$ to increase its profit during the period $2021$ to $2023.$