Problem - 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
|
€5,150
|
€1,190
|
€2,940
|
€2,680
|
|
Consumer products
|
12,080
|
2,105
|
6,790
|
5,770
|
|
Luxury products
|
6,905
|
1,100
|
3,810
|
4,370
|
|
Active cosmetics
|
2,630
|
580
|
1,160
|
970
|
|
Total
|
€26,765
|
€4,975
|
€14,700
|
€13,790
|
Required -
1.1 Compute profit margin for each division.
1.2 Which L'Oreal division has the highest profit margin?
- Professional products
- Consumer products
- Active cosmetics
- Luxury products
2.1 Compute investment turnover for each division.
2.2 Which L'Oreal division has the best investment turnover?
- Luxury products
- Professional products
- Consumer products
- Active cosmetics