WHO IS WHO ?

The following table provides information on six major companies. Each of them is representative of
an industry :

an airline company
an electric components manufacturer a cement producer
a supermarket company an employment services company
a food products producer a luxury products manufacturer

1 - Find which company is hiden behind each column

2 - Rank them by return on capital employed
3 - What would be the consequences of a 25 % growth for each company ?

All figures are in % of sales All figures are

Allinfigures
% of sales
are
Allinfigures
% of sales
are
Allinfigures
% of sales
are
Allinfigures
% of sales
are
Allinfigures
% of sales
are in % of sales
employmen
luxury supermar airline cement electric
Sales 100% 100% 100% 100% 100% 100%
Cost of sales 81.5 56.6 80.6 34.0 72.8 86.7

Administrative, commercial and other costs 16.1 34.5 15.7 41.3 15.9 5.8

OPERATING PROFIT 2.4 8.9 3.7 24.7 11.3 7.5

Financial revenues 0.1 0.6 0.2 1.7 1.4 0.3

Interest on loans 0.2 2.0 0.4 2.9 2.8 2.8

INCOME BEFORE TAX 2.3 7.5 3.5 23.5 9.9 5.0

Income tax 0.8 2.6 1.2 7.3 2.3 1.4

NET INCOME 1.5 4.9 2.3 16.2 7.6 3.6

(1) after deduction of labor costs : 8.2 17.3 8.3 16.7 20.4 27.0
(2) after deduction of depreciation : 0.6 5.2 2.6 3.8 6.2 7.5

Fixed assets 5.1 82.0 29.4 96.0 109.0 99.0

99.0
Inventory 0.0 8.2 7.9 47.3 11.6 0.9
Trade receivables 19.1 16.3 0.2 20.0 19.6 11.8
Other operating receivables 1.5 0.5 9.5 10.3 5.1 5.1

Cash and cash equivalent 3.0 6.8 2.0 38.3 9.1 5.1

Equity 9.9 53.9 16.6 126.7 83.6 35.7

Financial debts 2.1 32.4 5.0 42.3 36.3 48.3

Other liabilities 4.3 2.5 1.3 16.2 10.2 12.8

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 Trade payables 3.9 13.6 19.2 11.7 9.9 11.8
Other operating liabilities 8.5 11.4 6.9 15.0 14.4 13.3

Investments in operating assets 0.7 5.3 2.6 3.3 8.8 11.0

Acquisitions 0.2 8.9 5.8 0.3 11.0 0.0

WCR 8.2 0.0 -8.5 50.9 12.0 -7.3

Capital employed 13.3 82.0 20.9 146.9 121.0 91.7

IN % OF SALES WHO IS WHO ? WHO IS WHOWHO

IS IS WHO ?IS WHO ?
MARGINS AND COSTS

+ SALES 100.0 100.0 100.0 100.0 100.0 100.0

- Cost of sales 81.5 56.6 80.6 34.0 72.8 86.7

= GROSS MARGIN 18.5 43.4 19.4 66.0 27.2 13.3

- administrative and commercial costs 16.1 34.5 15.7 41.3 15.9 5.8

= OPERATING PROFIT (or EBIT) 2.4 8.9 3.7 24.7 11.3 7.5

+ Depreciation 0.6 5.2 2.6 3.8 6.2 7.5

= EBITDA (Earnings Before Interest & Tax Depreciation

3.0 & Amort)
14.1 6.3 28.5 17.5 15.0

+ financial revenues - interests -0.1 -1.4 -0.2 -1.2 -1.4 -2.5

= INCOME BEFORE TAX 2.3 7.5 3.5 23.5 9.9 5.0

- income tax 1% 3% 1% 7% 2% 1%

= NET INCOME 2.3 7.5 3.5 23.4 9.9 5.0

+ Net income 2.3 7.5 3.5 23.4 9.9 5.0

+ Depreciation 0.6 5.2 2.6 3.8 6.2 7.5
= NET CASH FLOW 2.9 12.7 6.1 27.2 16.1 12.5

NOPAT 2.29% 7.47% 3.49% 23.43% 9.88% 4.99%

Income tax 1% 3% 1% 7% 2% 1%
NOPAT 2.38 8.67 3.66 22.90 11.04 7.40
ROCE 18% 11% 17% 16% 9% 8%

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