Question: Hello, this work is really important so Plz do it correct and without any AI. I need help understanding the statements of Thai Bev Ltd

Hello, this work is really important so Plz do it correct and without any AI.

I need help understanding the statements of Thai Bev Ltd with the following questions and calculations:

  1. Calculate and analyse the following comparable ten ratios for the year ended 31 December 2022 and 2023:
RATIO FORMULA 2022 2023
Gross Profit Margin* [Gross Profit/ Revenue (Sales)] * 100 29.54 29.67
Operating Profit Margin* [Operating Profit/ Revenue (Sales)] * 100 16.95 15.46
Trade Receivable days [Trade Receivables / Credit Sales (Revenue)]*365 6.68 7.07
Trade Payable days* [Trade Payables / Cost of Sales]*365 17.44 16.19
Inventory days* Inventory/ Cost of sales 87.63 96.85
Interest Cover (Finance cost) Profit before Interest/ Interest Payable 8.66 7.56
Gearing Ratio Noncurrent Liabilities / (Noncurrent Liabilities+Equity) 1.04 1.05
Return on Equity Net Profit/ Equity 15.02 12.52
Earnings per share (given) Profit After Tax/ Number of Ordinary Shares 1.20 1.09
Price Earnings Ratio Share Price / Earnings per share 1.83 2.02
*To use consolidated values

Assume market price of share is $2.20

  1. Based on the interpretation and analysis of the ten ratios calculated in part (a) above, recommend to the potential venturers whether it is advisable to invest in Thai Bev Ltd.
  2. Discuss the limitations and benefits of ratio analysis and relate it to the company
  3. Advise on the non-financial aspects of the investment decision on Thai Bev Ltd.

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