2010 2011 2012

RETURN ON (47/372) x 100 = (40/382) x 100 = (20/372) x 100 =

EQUITY 12.63 % 10.47 % 5.38 %
Profit after tax and
dividend/Shareholder’
s equity x 100

RETURN ON (50/1,182) x 100 (60/1,392) x 100 (50/1,590) x 100

TOTAL CAPITAL =4.23 % =4.31 % =3.14 %
Profit from
operations/Total
assets x 100

OPERATING (550/1850) x 100 = (640/2200) x 100 = (700/2500) x 100 =

EXPENSES TO 29.73 % 29.09 % 28 %
REVENUE
Operating
expenses/Revenue x
100

RETURN ON EQUITY
Profit after tax and dividend/Shareholder’s equity x 100
In terms of evaluating profitability, return on equity is the percentage that concerns
shareholders, management teams, and potential investors the most. A company with a high
return on equity is seen as a good investment. Based on how much profit ($) could make for
every dollar invested, it is used to gauge and evaluate the entity's profitability. Net income
divided by shareholders' equity is the calculation. Because a high return on equity ratio shows
that the company is effectively using its investors' money, investors will want to see it.
However, in this particular instance, the ROE has been falling from 2010 to 2012 (12.63%,
10.47%, and 5.38%).

RETURN ON TOTAL CAPITAL

Profit from operations/Total assets x 100
Analysts can evaluate a company's asset utilization efficiency by looking at return on total
assets. A high return on total assets value denotes favourable, healthy asset use to generate
more earnings, which ultimately attracts investors. In this illustration, the ratio improved over
the two years of 2010 (4.23%) and 2011 (4.31%), but declined in 2012 (3.14%). Many factors
can cause ROA to decrease, including a decline in revenue, an increase in expenses, the
"heaviness" of an entity's asset holdings, ineffective working capital management, and a
large-scale asset acquisition.
By controlling inventory levels to reflect sales, the corporation can save inventory expenses
and thereby improve the ratio. - lower equipment expenses by renting or leasing, preventing
the asset from sitting idle. - Raise sales by providing better customer service or expanding
into previously untapped market niches. - Lower expenses by purchasing in bulk, building
strong relationships with suppliers, or locating suppliers with lower shipping cost

OPERATING EXPENSES TO REVENUE

Operating expenses/Revenue x 100
It essentially informs you how much money you currently need to spend in order to close
each transaction, or, to put it another way, how much money you spend on each sale. While a
high Operating expenses to revenue ratio may be unavoidable at first, you want this number
to decrease over time. This would imply that your business is becoming more streamlined
and efficient, which would increase your profit potential and help you expand more quickly.
And as it has been illustrated above the operating expenses to revenue ratio has decrease from
2010 to 2012 from 29.73% to 28%.