During the year to 31 December 2023, Tinderlake Ltd attempted to stimulate sales and increase its profits by reducing selling prices, holding larger inventories and giving customers longer credit. All of the company's purchases and sales are on credit terms. Summarised financial statements for the year to 31 December 2023 (with comparative figures for 2022) are as follows:

Ordinary dividends of £480,000 were paid during the year to 31 December 2023.

Required:Calculate the following ratios for Tinderlake Ltd for each of the two years concerned and comment on the results of these calculations:(a) Return on capital employed 

(b) Return on equity(c) Gross profit margin 

(d) Operating profit margin(e) Current ratio 

(f) Quick ratio(g) Inventory holding period 

(h) Receivables collection period(i) Capital gearing ratio.

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Tinderlake Ltd Statements of comprehensive income for the year to 31 December Sales revenue Cost of sales Gross profit Operating expenses Operating profit Interest expense Profit before taxation Taxation expense Profit for the year 2023 £000 5,327 4,420 907 87 820 130 690 135 555 Statements of financial position as at 31 December 2022 £000 3,725 2,905 820 75 745 20 725 145 580