Gross profit + Operating margin * Increase * Good * Sales increase more than costs * full interior design service. In 2012, customers prefer this service (due to trend – Increase in purchasing power and prefer their own design). Generated $50m additional revenue but cost also increases. However the sales increase more than the cost. Thus, gross profit increase. * More efficient in terms of cost and operating expense and finance cost. (Reductions) * Fully utilized resourcers – hire competent workers,etc - reduce cost * Finance cost reduce – In 2012, they buy another $200m of bank loan which has 10% of interest. However, due to the overdraft of 126-120 = 6. Their current finance cost is 20-6 = 14. Thus there is changes in the EBT – cost reduce * Sales increase 8% more than the market share in 2012.

X In 2011, there might incur some sales but we only recognize it after 2012. One of its policies stated that, if the completion of works is 20%, we only recognize it into financial statement in sales.
X In 2012, goods in progress in 2011 will be fully paid by customers after completion. Thus, the incurred amount will be recognize in 2012 after the completion.
Asset turnover * Reduce * Bad * Capital employed increase more than sales * There are chges in the capital employed in 2012 due to Alberto Blanc (held the roles of Chairman and Chief Executive) In November 2012, the floatation issued 120 new shares. * Borrowing increases. * It’s bad because the unable to generate more sales in 2012. Not fully utilized. * However, the issued period in only two month, thus the accuracy of the information is not accurate, not reasonable to compare two months to 1 whole year. But in 2013 or future, the company’s capital employed might be more efficient and able to generate more sales in the future. * Future plan, maybe due to expansion of