With reference to the appropriate ratios identified below, analyse and interpret the trend in Southern Cross’s profitability providing plausible reasons for any changes.
Ratio
2014 2015 2016
Return on equity 10.8 (3.1) (1.4)
Return on assets 3.0 (0.8) (0.3)
Cost of sales to sales 75.6 78.5 74.8
Research and 6.3 6.9 6.6
development expenses to sales
EBITDA to sales* 10.2 2.3 5.6
Debt to total assets ratio 72.4 75.3 76.9
*EBITDA is earnings before interest, tax and depreciation
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2017-01-13T02:34:45-0500
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