Option 1 An evaluation of a given companys financial state

(A) Task 1: Ratio Analyses (40 marks in total)

Conduct the required ratio analyses using the given data from the excel file. Explain the meaning and use of each financial ratio found and show all the calculations of the ratios in full.

1. Liquidity Ratios (10 marks)

1. Quick ratio
2. Current ratio

2. Profitability ratios (10 marks)

1. Net Profit ratio
2. Return on equity
3. Operating profitability ratio
4. Return on capital employed

3. Leverage ratios or Solvency ratios (10 marks)

1. Long-term Debt ratio
2. Debt equity ratio
3. Total debt ratio

4. Efficiency Ratios (10 marks)

1. Asset Turnover ratio
2. Inventory Turnover ratio
3. Day's Sales in inventory
4. 

52 weeks ended 1st September 2018 Total (m) 2277 -2261.9 15.1 52 weeks ended 2nd September 2017 Total (m) ( 2335 -2070.2 264.8 1 (A) Consolidated Income statement 2 3 4 5 Revenue 6 Cost of sales 7 Gross profit 8 Distribution costs 9 Administrative expenses 10 Operating loss/profit 11 Financial income 12 Finance costs 13 (Loss)/Profit before taxation 14 Taxation 15 (Loss)/Profit after taxation -135.1 -143 -353.4 -58.4 71.3 -481.3 2.3 0.1 -12.4 59 -12.5 -491.5 31.3 -460.2 - 10.2 48.8 16 1 Sept 2018 fm 2 Sept 2017(m) 619.4 603.7 991.9 654.9 19.3 1666.1 20.4 1243.5 396 81.3 42.7 374.1 82.9 40 520 497 17 (B) Consolidated Balance Sheet 18 19 20 21 Assets 22 Non-current assets 23 Intangible assets 24 Property, plant and equipment 25 Trade & other receivables 26 27 Current Assets 28 Inventories 29 Trade & other receivables 30 Cash and cash equivalents 31 32 Liabilities 33 Current liabilities 34 Borrowings 35 Trade & other payables 36 Net Current liabilities 37 38 Non-current liabilities - 39 Borrowings 40 Other non-current liabilities 41 Provisions 42 43 Net Assets 44 Equity 45 Share capital 46 Retained earnings 47 Other reserves 48 Total equity 49 - 165.6 -615.6 -781.2 -116.4 -579.6 -696 -356.2 -354.4 -66.3 -776.9 205.4 -199.5 -351.7 -9.7 -560.9 906.2 121.3 -94.5 178.6 205.4 424 243.3 238.9 906.2