AL Rajhi Group manufactures a range of mechanical auto parts for different vehicles known as Tijai parts
in local markets . All AL Rajhi managers have a wide span of control, so delegation is important. The
main objective of AL Rajhi Group is growth. The Finance Director has been looking at the accounting
data in Table 2. She is pleased about the performance of the business.
a)
b)
c)
d)
Calculate net profit margin
Explain Return on Capital employed importance to the prospectus shareholder of the company
Calculate ROCE for AlRajhi Group
Do you think the Finance Director is right to be pleased about the performance of AlRajhi
Group? Justify your answer using the data in Table 2 and appropriate ratios.