We will use three criteria to analyze their performance and financial situation. These are profitability, financial position and efficiency. First, we will analyze each company separately. Second, we will compare the financial performance of the two companies. Third, we will compare companies across the industry. Return on (total) capital employed (ROCE), return on equity (ROE), gross profit rate and net profit margin to analyze the profitability of the company. First, ROCE is used to measure management's effectiveness in using an entity's available resources to generate profits. Many investors believe that ROCE is the primary measure of profitability since it compares inputs to outputs. In 2012, Wing Tai experienced a sustainable increase in its ROCE. Since the increase in profits in 2012, ROCE has become more important. Since Wing Tai sold one of its main businesses to foreigners, profits have become greater. In this situation, the high ROCE ratio could reflect management's effectiveness in using an entity's available resources to generate profits, since branded products are distributed....