See Image for InformationCompute the following performance indices for both companies:Profit marginAsset turnoverReturn on Capital Employed (ROCE)Current ratioDebt equity ratio Compare and analyse the performance of the two companies computed in (1) above and explain what the board of Box Limited needs to do to achieve their objective . c. Which other non-financial measures can influence the decision of the board of Box Limited? Question 1Box Limited produces bottled water. The Board of the Company met recently to discusshow to boost it's profitability and market share. The Financial results of Box limited and theIndustry leader Stone limited are as follows:Operating Statements for the year ended 31 December, 2020Box LtdRevenueVariable costsOther costsNet ProfitNon-Current Assets:Freehold land and buildingsPlant and equipmentMotor vehiclesFixtures and fittingsCurrent Assets /Current Liabilities:ReceivablesSummarised Statement of Financial Position as at 31 December, 2020.Box Ltd£'0009007806502502580CashInventoryPayables£'00028001750500550Finance By:Ordinary share capitalReservesNon-current liabilities200100200(300)2002780Stone Ltd£'00047152550200028050027809001265Stone Ltd£'00020509008003504100300250150(250)4504550200035022004550

Name: See Image for InformationCompute the following performance indices for
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Description: See Image for InformationCompute the following performance indices for both companies:Profit marginAsset turnoverReturn on Capital Employed (ROCE)Current ratioDebt equity ratio Compare and analyse the performance of the two companies computed in (1)

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Answered: Compute the following performance…

Business

Finance

Compute the following performance indices for both companies: Profit margin Asset turnover Return on Capital Employed (ROCE)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 2P

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