From the data above, the Cadbury Schweppes Company’s gross profit margin was nearly the same and very low. But the net profit margin was only a little bit lower than its gross profit margin. It gives an insight that this company didn’t earn much money on its products while it has a good control on the cost of sales.The ROCE for both 2001 and 2002 are good. Though in 2002, the capital employed and profit before tax and interest increased, its ROCE decreased 0.8%. However, it gives a sign that its shareholders may be satisfied with the return on their investment.The recession of the European economies may be a big shock to this company at that time. However, in 2002, the economies became better. The Invesco Global Asset Management, leader of the investment, Erik Granada said the first company that worth investing after the recession is the Cadbury Schweppes Company. As it is a company that combined confection with beverage, it is more competitive. |