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Finance & Accounting
Pages 9 (2259 words)
Question 1: 1) Metcash Limited is a company that operates in various industries and is primarily an in-store retailer. The following are main business activities of Metcash Ltd: IGA Distribution: Metcash Ltd is involved in the distribution of IGA branded and non branded products.
Mitre 10: Metcash sells hardware under this brand name. It also involves home improvement solutions for the end consumers. Metcash Ltd operates in the areas of distribution, fresh food, liquor, fast moving consumer goods and hardware. 2: a) Sale of goods accounting for $11517.4 million was the main source of revenue for the Metcash group. b) Cost of sales was the largest expense for Metcash group. It was $10435.3 million in the year 2010. c) The total comprehensive income for the Metcash group was $229.6 million in the year 2010. d) Return on assets= Net income /Total Assets Return on assets for 2009= 203.2/3286.5 =6.18% Return on assets for 2010= 230.3/3639 =6.33% e) Gross profit margin= Gross profit /Revenue Gross profit margin for 2009=1116.6/11067.5 =10.09% Gross profit margin for 2010= 1172.8/11608.1 =10.10% f) There has been a very slight improvement in the profitability of Metcash Ltd. The return on assets increased from 6.18% in 2009 to 6.33% in 2010. This can be attributed to the higher sales revenue that Metcash earned in the year 2010 compared to the revenue in the year 2009. Although Metcash purchased more assets to generate the higher revenue, the increase in revenue was more than the proportionate increase in total assets. ...
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