Answer Happy

Question 2 You have obtained the profitability figures for two other firms in the car business, and these are given below. The firms are Ocelot plc, a manufacturer of hand-made luxury sports cars, and Bridge plc, a mass producer of small family cars. Comment on your findings, and on the comparisons you can make. At least all the data relates to the same industry, the car industry. Comparisons should be valid, therefore. 2007 2008 2009 2010 Year Ocelot ple ROCE 8% 8% 7.5% 4% 55% 60% 50% 50% Gross profit margin Net profit margin 22% 16% (5%) 12% Bridge ple ROCE 11% 11% 9% 10% 30% 34% 22% 30% Gross profit margin Net profit margin 8% 7% 5% 8% Interest rate 5% 7% 10% 6%