Explain the company that has superior performance

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Below are income statements for three companies: Company C Company X Company T (000) (000) (000) Revenue 450,000 350,000 250,000 Cost of sales (280,000) (200,000) (140,000) Gross profit 170,000 150,000 110,000 Overheads (50,000) (40,000) (30,000) Net Profit 120,000 110,000 80,000 Investment 1,500,000 1,200,000 800,000 Asset turnover 2 2.3 2.4 You have been requested to determine the company that is doing better using the ratios below: 1. Net profit margin 2. Return on capital employed 3. Explain the company that has superior performance in relation to the investment committed.

Reference no: EM133004760

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