Sam and Rob each run a trading business. The income for both businesses comes only from selling goods. They gave the information below for the year ending 30 June 2020. Sam: return on capital employed $12\%$, gross margin $25\%$, profit margin $14\%$, current ratio $2.8:1$. Rob: return on capital employed $10\%$, gross margin $30\%$, profit margin $12\%$, current ratio $1.2:1$. Which statement is right?
- ARob will find it easy to pay his current liabilities.
- BRob’s expenses are a higher proportion of his sales.
- CSam is not employing his capital effectively.
- DSam’s goods are sold at a higher price.