Question

2. Prepare a detailed report on the company's performance in terms of profitability and liquidity compared with the average of the sector over the period. Ratio 2009 2010 2011 Industry Average 26.9 27.9 22.5 26% % Return on capital employed 1.81 1.70 1.90 1.79 times Asset turnover (times) 14.9 16.4 11.8 14.5% Net profit margin (%) 1.22:1 1.3:1 1.23:1 1.5:1 Current ratio 0.87:1 0.87:1 0.99:1 1.03:1 Acid test ratio 91 102 85 83 days Debtors collection period (days) 81.5% 70.8% 63.7% 32% Gearing ratio (%)
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Answer 1

Explanation:

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