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2008
2007
2006
2005
Sales growth
10.0%
8.5%
8.0%
7.0
%
Return on shareholders’ investment
(ROI)
5.0%
4.8%
4.5%
4.1
%
Return on capital employed (ROCE)
4.0%
4.5%
5.0%
5.3
%
Operating profit/sales
6.0%
6.3%
6.5%
6.7
%
Gross profit/sales
28.0%
27.0%
26.5%
25.0
%
Working capital
104.0%
108.0
%
111.0%
112.
0%
Acid test (quick ratio)
68.0%
72.0%
73.0%
77.0
%
Gearing
65.0%
62.0%
60.0%
56.0
%
Interest cover
1.7
1.9
2.1
2.3
Asset turnover
108.0%
105.0
%
99.0%
94.0
%
Days’ sales outstanding
61.0
58.0
55.0
57.0
Stock turn
15.0
13.0
13.0
12.0
Days’ purchases outstanding
72.0
68.0
64.0
61.0
Dividend per share
10p
10p
10p
10p
Dividend payout ratio
65.0%
60.0%
58.0%
58.0
%
Dividend yield
4.0%
3.8%
3.5%
3.2
%
Price/earnings ratio
9.6
8.5
8.2
7.7
b.
Use the above ratios to explain the strengths and weaknesses of the financial
performance of Corollary plc over the last four years.

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