Toome Ltd is a manufacturer of mechanical toys for boys. You have been provided with a schedule of key performance ratios for the company for the period 20X5 to 20X9 as follows:

Required
Using the historical data above, write a report to the directors of Toome Ltd that analyses the performance of the company over the five years.

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Profit before interest/revenue (%) Revenue/non-current assets (times) Revenue/net current assets (times) Cost of sales/inventory (times) Cost of sales/revenue (9) Selling and distribution/revenue (%) Administrative/revenue (%) Trade receivables/ave, days sales (days) Trade payables/ave. days sales (days) Current ratio 20X5 4.5 4.2 2.3 1.9 68.0 22.0 5.5 67.5 43.2 5.2 20X6 1.8 3.3 2.6 2.0 70.5 21.5 6.2 64.5 42.3 2.9 20X7 1.9 3.5 3.0 2.4 72.0 21.5 4.6 62.5 46.8 3.1 20X8 8.4 3.6 3.9 2.7 69.2 18.2 4.2 54.5 49.5 2.3 20X9 10.3 3.9 4.9 2.9 68.2 16.3 5.2 51.5 56.1 1.9