SECTION C
Question 1
Requirement (a) Ratios:
Ratio
Workings
Treats Co
Sector average
per question
Return on year-end capital employed (ROCE)
To be calculated 28.8%
Net asset turnover
to be calculated 2.4 times
Gross profit margin
to be calculated 55%
Operating profit margin
to be calculated 12%
Current ratio
to be calculated 1.8:1
Inventory turnover period
to be calculated 25 days
Gearing (debt/equity)
to be calculated 43%
Receivables collection period
to be calculated 15 days
Requirement (b) analysis:
Question 2
ANSWERS
Question 1
Question 2