Question:
L'Oreal reports the following for a recent year for the major divisions in its Cosmetics branch.
|
(€ millions)
|
Sales
|
Income
|
Total Assets
End of Year
|
Total Assets
Beginning of Year
|
|
Professional products
|
€ 2,472
|
€ 519
|
€ 2,516
|
€ 2,440
|
|
Consumer products
|
8,355
|
1,578
|
5,496
|
5,361
|
|
Luxury products
|
4,170
|
766
|
4,059
|
2,695
|
|
Active cosmetics
|
1,289
|
259
|
817
|
818
|
|
Total
|
€16,286
|
€3,122
|
€12,888
|
€11,314
|
1. Compute profit margin for each division. State your answers as percents, rounded to two decimal places. Which L'Oreal division has the highest profit margin?
2. Compute investment turnover for each division. Round your answers to two decimal places. Which L'Oreal division has the best investment turnover?