Calculate the main profitability ratios for both companies

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Reference no: EM131201705

Practice questions:

The following figures have been extracted from the financial statements of two companies.

Calculate the main profitability ratios for both companies and suggest reasons for any differences you find.

	Adams Ltd	Evelyn Ltd
	£	£
Capital employed	281,000	596,000
Profit before interest and tax	29,500	41,500
Gross profit	71,400	156,200
Sales	354,900	706,260

Reference no: EM131201705

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