Both Ali plc and Bhaskar plc operate wholesale electrical stores throughout the UK. The financial statements of each business for the year ended 31 December last year are as follows:

Required:

For each business, calculate two ratios that are concerned with each of the following aspects:

• Profitability;
• Efficiency;
• Liquidity;
• Gearing; and
• Investment (ten ratios in total).

What can you conclude from the ratios that you have calculated?

Transcribed Image Text:

Statements of financial position as at 31 December last year Ali plc £m ASSETS Non-current assets Property, plant and equipment (cost less depreciation) Land and buildings Fixtures and fittings Current assets Inventories Trade receivables Cash at bank Total assets EQUITY AND LIABILITIES Equity £1 ordinary shares Retained earnings Non-current liabilities Borrowings - Loan notes 360.0 87.0 447.0 592.0 176.4 84.6 853.0 1,300.0 320.0 367.6 687.6 190.0 Bhaskar plc £m 510.0 91.2 601.2 403.0 321.9 91.6 816.5 1,417.7 250.0 624.6 874.6 250.0