Next amongst most profitable FTSE companies

Fashion retailer Next is listed in a top position amongst the most profitable FTSE 350 listed companies.

As reported by ‘This is Money’, “Next is legendary in the City for its immense ability to generate returns quickly from opening new stores.” It is worthy a note that the company holds the third place within this particular table.

The British journal has put together a list of the most promising stocks to invest in from those listed within the ample FTSE 350 benchmark index.

To compile the list, the journal has looked into the following indicators:

- Return on Capital: calculated by dividing a company’s earnings before interest and tax and divides by employed capital.
- Operating Margin: worked out by taking operating profit and dividing it by sales.
- Free Cash Flow to Sales: indicates the percentage of a company’s sales revenues that actually turn into cash  after everything else has been paid for.
- Return on Equity: calculated by dividing a company’s net income by the amount of money that investors have invested in it. This is also known as Shareholder Equity.

Following these criteria Next stands the third most profitable company to invest in from the FTSE 350, only behind investment supermarket Hargreaves Lansdown and European publishing group Reed Elsevier.