Business Studies · May / June 2021 · Paper 11 · Question 2

PJA make fashion clothing for 16-25 year olds. Many of its competitors are multinational companies. PJA produce new products every 3 weeks. All PJA’s products are made in a local factory because of import quotas. The Managing Director is reviewing PJA’s financial statements using ratio analysis. An extract is shown in Table 2.1. Table 2.1 Extract from PJA’s financial statements for 2020 Revenue ($m) 7400 Gross profit ($m) 3330 Profit ($m) 1100 Current ratio 1.5 Return on Capital Employed (ROCE) 8%

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