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• Determine the following:
  • Total sales
  • Cost of goods sold
  • Gross Margin
  • Gross Margin by Percentage
  • Average inventory
  • Inventory turns
  • GMROII
  • Turn Earn Index
• State how you would recommend they set their safety stock levels?

2014 Sm 2015 $m 2016 Sm 2017 2018 $m $m For the year ended 31 December Revenue and profits Product Sales 23,641 20,152 26,095 21,319 21,049 Externalisation Revenue Cost of sales 452 1,067 1,683 2,313 1,041 (5,842) (4,646) (4,126) (4,318) (4,936) Distribution costs (324) (339) (326) (310) (331) Research and development expense (5,579) (5,997) (5,890) (5,757) (5,932) Selling, general and administrative costs (13,000) (11,112) (9,413) (10,233) (10,031) Other operating income and expense 335 1,500 1,655 1,830 2,527 Operating profit 2.137 4.114 4,902 3,677 3,387 Finance income 78 46 67 113 138 (963) Finance expense (1,075) (1,384) (1,508) (1,419) Share of after tax losses associates and joint ventures (6) (55) (16) (33) (113) Profit before tax 1,246 3.069 3.552 2,227 1,993 Taxation (11) (243) (146) 641 57 Profit for the period 2,826 2,868 2,050 1,235 3,406 Other comprehensive income for the period, net of tax (1,506 (338) (1,778) 639 (1,059) (271) 2,488 3.507 991 Total comprehensive income for the period 1,628 Profit attributable to: Owners of the Parent 1,233 2,825 3,499 3,001 2,155 Non-controlling interests (93) (133) (105) 2 1 Earnings per share Basic earnings per $0.25 Ordinary Share Diluted earnings per $0.25 Ordinary Share $0.98 $2.23 $2.77 $2.37 $1.70 $2.23 $2.76 $2.37 $0.98 $1.70 Dividends $2.80 $2.80 $2.80 $2.80 $2.80 Return on revenues Operating profit as a percentage of Total Revenue 8.0% 16.7% 21.3% 16.4% 15.3% Ratio of earnings to fixed charges 6.1 11.3 8.9 4.4 3.7 2014 Sm 2015 $m 2016 Sm 2017 2018 $m $m For the year ended 31 December Revenue and profits Product Sales 23,641 20,152 26,095 21,319 21,049 Externalisation Revenue Cost of sales 452 1,067 1,683 2,313 1,041 (5,842) (4,646) (4,126) (4,318) (4,936) Distribution costs (324) (339) (326) (310) (331) Research and development expense (5,579) (5,997) (5,890) (5,757) (5,932) Selling, general and administrative costs (13,000) (11,112) (9,413) (10,233) (10,031) Other operating income and expense 335 1,500 1,655 1,830 2,527 Operating profit 2.137 4.114 4,902 3,677 3,387 Finance income 78 46 67 113 138 (963) Finance expense (1,075) (1,384) (1,508) (1,419) Share of after tax losses associates and joint ventures (6) (55) (16) (33) (113) Profit before tax 1,246 3.069 3.552 2,227 1,993 Taxation (11) (243) (146) 641 57 Profit for the period 2,826 2,868 2,050 1,235 3,406 Other comprehensive income for the period, net of tax (1,506 (338) (1,778) 639 (1,059) (271) 2,488 3.507 991 Total comprehensive income for the period 1,628 Profit attributable to: Owners of the Parent 1,233 2,825 3,499 3,001 2,155 Non-controlling interests (93) (133) (105) 2 1 Earnings per share Basic earnings per $0.25 Ordinary Share Diluted earnings per $0.25 Ordinary Share $0.98 $2.23 $2.77 $2.37 $1.70 $2.23 $2.76 $2.37 $0.98 $1.70 Dividends $2.80 $2.80 $2.80 $2.80 $2.80 Return on revenues Operating profit as a percentage of Total Revenue 8.0% 16.7% 21.3% 16.4% 15.3% Ratio of earnings to fixed charges 6.1 11.3 8.9 4.4 3.7

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