Skip to main content

Activity 3 - Vodafone profit margin

Use the database in this section of this site to find the data you need to calculate the gross and net profit margins for Vodafone plc ... be ready, there are some losses to deal with here.

You use this table to enter your results.

Vodafone plc
Profitability31 Mar 200231 Mar 2001
Gross Profit Margin
Net Profit Margin

Did you get this?

Let's discuss what these results mean.

Firstly, Vodafone has, compared to the Carphone Warehouse, an apparently healthy gross profit margin: Vodafone's gross profit margin is around 40% compared to the Carphone Warehouse's gross profit margin of around 25%.

However, look at the net profit margin: something strange is happening to Vodafone because it has made a net loss for both of the two years. Take a look at Vodafone in the database for more information on what might have gone wrong. Vodafone's operating expenses have increased by £8 billion over the year whilst turnover has increased by £6.2 billion; and the cost of sales has increased by £4.7 billion. The net effect of these changes is that losses have gone from -6.9 billion to -12.7 billion: a huge increase in the net loss.

So, even though the businesses are in the same industry, they have very different results, we can say they have very different 'profiles'.

Why not try some more profitability questions?

Additional notes are available on advanced profitability or you can move on to the Rate of Return section.


Source:
http://www.bized.co.uk/
Labels:

Comments

Post a Comment

Silahkan tulis komentar anda, gunakan bahasa yang baik dan enak dibaca. Terimakasih...!

Popular posts from this blog

Interactive Worksheet: The Accounting Equation

by Ken Delaney-Moore, Sheffield Hallam University Aims: This worksheet deals with: The accounting equation. The accounting concepts of 'business entity' and 'dual aspect'. The effects of transactions on the balance sheet. After having completed the worksheet you should be better able to perform to syllabus specifications relating to these points. When you are done, please fill-in the on-line evaluation form in order for us to monitor the quality of the materials we provide for you. Tell us what we're doing right and wrong. It takes very little time, and your opinions are valued - thank you. A business start-up Imagine that 'Jim Sayers' puts £5,000 of his personal savings into a business bank accoun...
Post a Comment
Read more

MEMBUAT DATABASE APLIKASI AKUNTANSI DENGAN MICROSOFT ACCESS 2007

Microsoft Office Access 2007 merupakan aplikasi pembuatan database yang diciptakan Raksasa Microsoft Corporation, Hingga saat ini banyak sekali perusahaan menggunakan aplikasi ini dalam membuat database untuk keperluan bisnisnya, baik dengan menggunakan 100% access, maupun dengan memanfaatkan enginenya dan menggabungkan dengan aplikasi visual lainnya seperti Visual Basic, dsb. Access 2007 merupakan dipenyempurnaan dari access 2003. Berikut ini kita akan mencoba membuat database sederhana untuk keperluan akuntansi. Untuk membuat aplikasi database akuntansi tentu diperlukan banyak tabel, query, dan report yang harus dipersiapkan. Apalagi jika akuntansi untuk perusahaan dagang, dan manufaktur. Untuk lebih memudahkan bagi pemula yang ingin belajar membuat aplikasi dengan menggunakan Microsoft office access 2007, maka disini saya akan mencoba membahas aplikasi database akuntansi sederhana untuk perusahaan jasa. dalam menyusun suatu database tentu sebelumnya kita harus menyusun normalisas...
46 comments
Read more

The Current Ratio

The Current Ratio The current ratio is also known as the working capital ratio and is normally presented as a real ratio. That is, the working capital ratio looks like this: Current Assets: Current Liabilities = x: y eg 1.75: 1 The Carphone Warehouse is our business of choice, so here is the information to help us work out its current ratio. Consolidated Balance Sheet 31 March 2001 25 March 2000 £'000 £'000 Total Current Assets 315,528 171,160 Creditors: Amounts falling due within one year 222,348 173,820 As we saw in the brief review of accounts section with Tesco's financial statements, the phrase current liabilities is the same as Creditors: Amounts falling due within one year . Here's the table to fill in. OK, so we've done this one for you! Current Ratio For the Carphone Warehouse 31 March 2001 Current Assets: Current Liabilities 315,528: 222,348 1.42: 1 25 March 2000 Current Assets: Current Liabilities 171,160: 173,820 0.98: 1 Math...
Post a Comment
Read more