q1: Write a report to analyse ratios calculated with proper interpretation in part (A). Make sure to compare the ratios with industry benchmark and also over time. The report should contain more than 1000-2000 words.

for information

LIQUIDITY RATIOS

It refers to the ability of a concern to meets its current obligations as and when become due.

QUICK RATIO:-It is also known as liquid ratio or acid test ratio. It may be defined as the relationship between the liquid/quick assets and current or liquid assets.

formula to calculate quick ratio is: -

QUICKRATIO=QUICKASSETSCURENTLIABILITIES

QUICK ASSETS=CURRENT ASSETS-(STOCK OR INVENTORIES+PREPAID EXPENSES)

=70370000-14806000

=55564000

CURRENT LIABILITY=50723000

QUICK RATIO=

55,564,000\50,723,000 =1.10

CURRENT RATIO = It can be defined as the relationship between current assets and current liabilities.it is also known as working capital ratio.

formula to calculate current ratio is: -

CURENTRATIO= CURENTASSETSCURENTLIABILITIESCURENTRATIO=

70,370,00050,723,000=1.39

DEBT RATIO-

It is defined as the ratio of total debt to total assets.

DEBT RATIO= TOTAL DEBT/TOTAL ASSETS= 102,122,000\150,248,000=0.68

EQUITY RATIO-

It is defined as the relationship between shareholder's fund and total assets.

EQUITY RATIO= TOTAL EQUITY/TOTAL ASSETS

EQUITY RATIO= 48,126,000\150,248,000=0.32

3.PROFITABILITY RATIO:

RETURN ON ASSETS=It is a financial ratio that indicates a company's profitability in relation to its total assets.

Formula

ROA= NET INCOME/TOTAL ASSETS=5,175,000\150,248,000=0.03

=3%

RETURN ON EQUITY-NET PROFIT/PAID UP EQUITY CAPITAL*100

ROE=5,175,000\4,812,600100=107.53%

GROSS PROFIT MARGIN= GROSS PROFIT/NET SALES*100

GROSS PROFIT MARGIN =25,927,000\86,849,000100=29.85

OPERATING PROFIT MARGIN =OPERATING PROFIT /NETSALES*100

OPERATING PROFIT=6,888,000\86,849,000100=7.93

NET PROFIT MARGIN= NET PROFIT/NET SALES*100

NET PROFIT=5,175,00086,849,000100=5.96

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