i.

3 Years agos Ratios

a. Gross Profit Rate = GP/Net sales 500/1000= 0.5 x 100 = 50% b. Net Profit Rate = NP/Net sales 90/1000= 0.09 x 100 = 9% c. Current Ratio = CA/CL 650/260 = 2.5:1 d. Quick Ratio = CA(excluding inv.)/CL 150/260 = 0.58:1 e. EBIT Margin = Profit before interest and tax/Net sales 160/1000 = 0.16 x 100 = 16% f. Earnings Per Share = Profit after interest and tax/Number of ordinary shares 90/1000 = $0.09 cents per share g. Dividend yield = Dividends per share/Share price Total dividends of $60/1000 shares = $0.06 cents per share 0.06/0.90 = 0.066 x 100 = 6.67% h. Dividend payout rate = Dividends/Profit 60/90 = 0.666 x 100 = 66.67% i. Price Earnings ratio = Share price/Earnings Per Share 0.90/0.09 = 10 times

2 Years agos Ratios

a. Gross Profit Rate = GP/Net sales 550/1200 = 0.458 x 100 = 45.83% b. Net Profit Rate = NP/Net sales 110/1200 = 0.091 x 100 = 9.17% c. Current Ratio = CA/CL 1020/320 = 3.19:1 d. Quick Ratio = CA(excluding inv.)/CL 220/320 = 0.69:1 e. EBIT Margin = Profit before interest and tax/Net sales 215/1200 = 0.179 x 100 = 17.92% f. Earnings Per Share = Profit after interest and tax/Number of ordinary shares 110/1000 = $0.11 cents per share g. Dividend yield = Dividends per share/Share price Total dividends of $100/1000 shares = $0.10 cents per share 0.10/1.50 = 0.066 x 100 = 6.67% h. Dividend payout rate = Dividends/Profit 100/110 = 0.909 x 100 = 90.91% i. Price Earnings ratio = Share price/Earnings Per Share 1.50/0.11 = 13.64 times

Current Years Ratios

a. Gross Profit Rate = GP/Net sales 700/1600 = 0.4375 x 100 = 43.75% b. Net Profit Rate = NP/Net sales 160/1600 = 0.1 x 100 = 10% c. Current Ratio = CA/CL 620/750 = 0.83:1 d. Quick Ratio = CA(excluding inv.)/CL 220/750 = 0.29:1 e. EBIT Margin = Profit before interest and tax/Net sales 292/1600 = 0.1825 x 100 = 18.25% f. Earnings Per Share = Profit after interest and tax/Number of ordinary shares 160/1000 = $0.16 cents per share g. Dividend yield = Dividends per share/Share price Total dividends of $160/1000 shares = $0.16 cents per share 0.16/3.80 = 0.042 x 100 = 4.21% h. Dividend payout rate = Dividends/Profit 160/160 = 100% i. Price Earnings ratio = Share price/Earnings Per Share 3.80/0.16 = 23.75 times

Projection Ratios
a. Gross Profit Rate = GP/Net sales

1200/2200 = 0.5454 x 100 = 54.55% b. Net Profit Rate = NP/Net sales 330/2200 = 0.15 x 100 = 15% c. Current Ratio = CA/CL 760/850 = 0.89:1 d. Quick Ratio = CA(excluding inv.)/CL 360/850 = 0.42:1 e. EBIT Margin = Profit before interest and tax/Net sales 485/2200 = 0.2204 x 100 = 22.05% f. Earnings Per Share = Profit after interest and tax/Number of ordinary shares 330/1000 = $0.33 cents per share g. Dividend yield = Dividends per share/Share price Total dividends of $200/1000 shares = $0.20 cents per share 0.20/6.00 = 0.033 x 100 = 3.33% h. Dividend payout rate = Dividends/Profit 200/330 = 0.6060 x 100 = 60.61% i. Price Earnings ratio = Share price/Earnings Per Share 6.00/0.33 = 18.18 times

3 years ago Gross Profit Rate Net Profit 50% 9%

2 years ago 45.83% 9.17%

Current year 43.75% 10%

Projection 54.55% 15%

Rate Current Ratio Quick Ratio EBIT Margin EPS Dividend Yield Dividend Payout P/E Ratio 2.50:1 0.58:1 16% $0.09 6.67% 66.67% 10 times 3.19:1 0.69:1 17.92% $0.11 6.67% 90.91% 13.64 times 0.83:1 0.29:1 18.25% $0.16 4.21% 100% 23.75 times 0.89:1 0.42:1 22.05% $0.33 3.33% 60.61% 18.18 times

ii. Based on the above ratios, we can see that cost of goods sold had increased as a proportion of gross profit to decrease the GPR, until the projected rate will apparently exceed half of cost of sales again. Overall expense control increased in the NPR, as it rose and is projected to do the same. However, the liquidity position of the business has improved slightly, but then begun to deteriorate until both ratios were below 1. If this were to continue, the business will incur some serious trouble repaying both short and immediate term debts as they fall due. Earnings before interest and income taxes have improved favourably, and the earnings per share has reflected this, rising from 9 cents to 33 cents per share. The percentage of yield from shares has decreased, yet the payout from increased profits to dividends has increased to the point of equally sharing the same figure as profit, and is then forecasted to decrease again. The relationship between market price per share and the earnings per share has fluctuated significantly, but is still on the increase.