UDG Healthcare plc Group Income Statement for the year ended 30 September 2020 Revenue Cost of...

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UDG Healthcare plc Group Income Statement for the year ended 30 September 2020 Revenue Cost of a Cross profi Selling and distribution expenses Administrative expenses Other operating expenses Other operating income Share of equity accounted investment prof Operating prof Profix for the financial year 5 6 1279194 (102) 398,171 (205,596) (24,250) (2,064) 2,372 130,917 19,021 (32,330) 117,608 (22,050) 95,558 1,279,194 (1342) (884,365) (LM) (864) (892) 8,257 (5.900) (1539) (9,440) (2,717) 394,829 (201,596) (25.114) (4) 5,357 (2,064) 2.372 125.016 18.021 (3) 108,168 (15.327) 92,841 1,298.523 378.903 (56) (2840) (40,474) 50 120,317 16171 (24,300 112,187 (2095) 91236 UDG Healthcare plc Group Balance Sheet as at 30 September 2020 * 2 (7,372) (1050) (160) (42,053) (390) 4,365 276.920 129,23 (927,382) (193856) (22,890) (74,045) (2,136) 50 78,264 20.314 (24,301) 74,277 52,401 a) Discuss the business's financial performance using UDG Healthcare plc Group's financial statement above. To address this question in full, you may consider the following: I. Calculate and analyse the Return on Equity (ROE) using the DuPont method for 2019 and 2020. II. Calculate the Current Ratio and Debt to Equity ratios and discuss the company's liquidity and solvency position with the help of these ratios. III. Based on the ratios above, do you think UDG is a viable business? Justify your answer. Please note that the following are the industry averages for the ratios above. ROE: 8.2% Current Ratio: 2.1:1 Debt to Equity Ratio: 21.3 % UDG Healthcare plc Group Income Statement for the year ended 30 September 2020 Revenue Cost of a Cross profi Selling and distribution expenses Administrative expenses Other operating expenses Other operating income Share of equity accounted investment prof Operating prof Profix for the financial year 5 6 1279194 (102) 398,171 (205,596) (24,250) (2,064) 2,372 130,917 19,021 (32,330) 117,608 (22,050) 95,558 1,279,194 (1342) (884,365) (LM) (864) (892) 8,257 (5.900) (1539) (9,440) (2,717) 394,829 (201,596) (25.114) (4) 5,357 (2,064) 2.372 125.016 18.021 (3) 108,168 (15.327) 92,841 1,298.523 378.903 (56) (2840) (40,474) 50 120,317 16171 (24,300 112,187 (2095) 91236 UDG Healthcare plc Group Balance Sheet as at 30 September 2020 * 2 (7,372) (1050) (160) (42,053) (390) 4,365 276.920 129,23 (927,382) (193856) (22,890) (74,045) (2,136) 50 78,264 20.314 (24,301) 74,277 52,401 a) Discuss the business's financial performance using UDG Healthcare plc Group's financial statement above. To address this question in full, you may consider the following: I. Calculate and analyse the Return on Equity (ROE) using the DuPont method for 2019 and 2020. II. Calculate the Current Ratio and Debt to Equity ratios and discuss the company's liquidity and solvency position with the help of these ratios. III. Based on the ratios above, do you think UDG is a viable business? Justify your answer. Please note that the following are the industry averages for the ratios above. ROE: 8.2% Current Ratio: 2.1:1 Debt to Equity Ratio: 21.3 %

Answer rating: 100% (QA)

To assess UDG Healthcare plc Groups financial performance based on the provided financial statements we will calculate and analyze the Return on Equit... View the full answer