Ocean Limited is an old-established clothing retailer Uzbekistan. The company operates from expensive city-centre premises and...

 

Transcribed Image Text:

Ocean Limited is an old-established clothing retailer Uzbekistan. The company operates from expensive city-centre premises and offers a high standard of customer service. The company's customers are willing to pay top prices to shop in comfort, and one of its competitive advantages is customers royalty. The following financial ratios are related to the company's performance for the years ended 30 June 2019 and 2020. Ratios Current ratio Acid-test ratio Inventory turnover (times) Debts to total assets Gross profit percentages Operating profit percentage Return on capital employed Return on equity Interest cover (times) Dividend cover 2019 3 1.0 10 20 48% 19.5% 13% 20.5% 69 2020 1.5 0.6 6.8 50 29% 11.3% 4.5% 10.7% 3 1.5 Required: You have been engaged by the company to analyse the performance of the company for the last two years. Write a report to the Board of Directors analysing the company's performance and provide recommendations to improve on its competitive advantages in the business environment and operation. Ocean Limited is an old-established clothing retailer Uzbekistan. The company operates from expensive city-centre premises and offers a high standard of customer service. The company's customers are willing to pay top prices to shop in comfort, and one of its competitive advantages is customers royalty. The following financial ratios are related to the company's performance for the years ended 30 June 2019 and 2020. Ratios Current ratio Acid-test ratio Inventory turnover (times) Debts to total assets Gross profit percentages Operating profit percentage Return on capital employed Return on equity Interest cover (times) Dividend cover 2019 3 1.0 10 20 48% 19.5% 13% 20.5% 69 2020 1.5 0.6 6.8 50 29% 11.3% 4.5% 10.7% 3 1.5 Required: You have been engaged by the company to analyse the performance of the company for the last two years. Write a report to the Board of Directors analysing the company's performance and provide recommendations to improve on its competitive advantages in the business environment and operation.

Answer rating: 100% (QA)

The image shows a financial case study for Ocean Limited a clothing retailer in Uzbekistan According to the information provided various financial ratios for the years ended 30 June 2019 and 2020 are ... View the full answer