§ Mr. Nicholas Edwardsasked the Chancellor of the Exchequer if he will publish a table showing for the years 1950 to 1973 the average rate of return on net assets in United Kingdom manufacturing industry, analysed as follows: (a) pre-tax rate of return on historic cost net assets, (b) pre-tax rate of return on
RATES OF RETURN ON CAPITAL EMPLOYED LARGE QUOTED MANUFACTURING COMPANIES Net trading income/Net trading assets* Net income after deducting all interest charges/Shareholders' interest† At historic costs At replacement costs Before tax After tax 1950 … … … … 20.9 19.6 25.9 12.3 1951 … … … … 22.8 21.1 27.9 12.1 1952 … … … … 17.8 15.6 21.4 9.0 1953 … … … … 18.5 15.9 21.7 9.7 1954 … … … … 19.1 16.6 22.6 11.2 1955 … … … … 18.9 16.0 21.9 11.4 1956 … … … … 17.1 14.2 19.8 9.9 1957 … … … … 16.1 13.0 18.5 9.3 1958 … … … … 14.8 11.2 16.9 9.0 1959 … … … … 16.0 13.4 17.9 10.3 1960 … … … … 16.5 14.1 18.1 10.0 1961 … … … … 14.2 11.9 15.3 8.3 1962 … … … … 12.4 10.3 13.6 7.4 1963 … … … … 13.3 11.0 14.6 8.0 1964 … … … … 14.6 12.2 16.3 9.1 1965 … … … … 13.9 11.3 15.3 9.9 1966 … … … … 12.0 9.5 13.3 6.2 1967 … … … … 12.0 9.7 13.7 7.2 1968 … … … … 13.4 10.8 15.9 8.3 1969 … … … … 12.5 9.9 15.1 7.7 1970 … … … … 11.5 8.6 13.6 7.4 1971 … … … … 12.6 9.2 14.8 8.6 1972 … … … … — — 17½‡ 11‡ * The ratio of net trading income to net trading assets is the ratio of gross trading income less depreciation to the total of tangible net fixed assets, net current assets other than investments, bank overdrafts, loans and dividend provisions. In the first column both depreciation and tangible net fixed assets are at historic costs; in the second column they are at replacement costs. This analysis prepared by the accountancy staff of the Monopolies and Mergers Commission is based on the results of the Department of Industry analysis of the accounts of large manufacturing quoted companies. † The ratio of net income to shareholders' interest is the ratio of gross income less all interest payments and depreciation at book values to the total of ordinary and preference shares, capital and revenue reserves, tax equalisation and deferred tax reserves and minority interests. The post tax figures are after deducting from net income company tax charged other than deferred tax, and income tax payable on ordinary and preference dividend and adding investment grants. This is based on the Department of Industry analysis of the accounts of large manufacturing quoted companies operating mainly in the United Kingdom; the population of companies covered by this analysis was revised in 1960, 1964 and 1969. ‡ Based on provisional results for 1972 derived from accounts analysed up to 30th September 1973.