GO AIR .

1. Overall Measures a) Return on investment (ROI) = net income / investment =-8% b) Return on ordinary shareholders funds (ROSF) = (net income -preferred dividends)x100 / Ordinary share capital +Reserves. =-1% c) Return on capital employed(ROCE) = (Operating profit)/( Share capital +Reserves+Long term liabilities) = -0.22% d) Earnings per share (EPS) = Profit for the year/Number of ordinary shares in issue = = e) Price/Earnings (PE) ratio = Market price per share/EPS = = 2. Profitability Measures a. Operating profit margin = (Operating profit/Sales revenue)X100 =28% b. Gross profit margin = (Gross profit/Sales revenue)X100 =12% 3. Efficiency Measures I. Average inventories turnover period = (Average inventories held/Cost of sales)X365 =11days Average settlement pe riod for trade receivables = (Average trade receivables/Credit sales revenue)X365 =87days Average settlement period for trade payables = (Average trade payables/Credit purchases)X365 =days

II. III.

IV.

4. Liquidity i. Current ratio = current assets/current liabilities. =4.68times Acid Test (or quick) ratio = monetary current assets / current liabilities Monetary current assets = current assets - inventory - prepaid assets. = =1.39times 5. Solvency A. Debt /equity ratio = total liabilities or debt/shareholders equity ii. =3.504times B. Times interest earned/Interest covered ratio = income before interest(operating profit)/interest expense =1.68 6. Dividend Policy Dividend pay-out = dividends/net income =0 Dividend yield = dividend per share/ market price per share =0