As per the latest annual report, the following information is made available from the financial statements of ABC Inc. for the year 2019. Sales COGS EBIT EBITDA Interest Expense Net Income Total Debt Particulars Total Assets Net Fixed Assets Total Equity Current Assets Current Liabilities Cash & Cash Equivalents Accounts Receivables Inventories Accounts Payable Amount (in millions) £260,174 £161,782 £63,930 £76,477 £3,576 £55,256 £108,047 £338,516 £37,378 £90,488 £162,819 £105,718 £48,844 £22,926 £4,106 £46,236
As per the latest annual report, the following information is made available from the financial statements of ABC Inc. for the year 2019. Sales COGS EBIT EBITDA Interest Expense Net Income Total Debt Particulars Total Assets Net Fixed Assets Total Equity Current Assets Current Liabilities Cash & Cash Equivalents Accounts Receivables Inventories Accounts Payable Amount (in millions) £260,174 £161,782 £63,930 £76,477 £3,576 £55,256 £108,047 £338,516 £37,378 £90,488 £162,819 £105,718 £48,844 £22,926 £4,106 £46,236
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Hi there, could I have some help in this statement please? thank you so much
Transcribed Image Text:As per the latest annual report, the following information is made available from the
financial statements of ABC Inc. for the year 2019.
Sales
COGS
EBIT
EBITDA
Interest Expense
Net Income
Total Debt
Particulars
Total Assets
Net Fixed Assets
Total Equity
Current Assets
Current Liabilities
Cash & Cash Equivalents
Accounts Receivables
Inventories
Accounts Payable
Amount (in millions)
£260,174
£161,782
£63,930
£76,477
£3,576
£55,256
£108,047
£338,516
£37,378
£90,488
£162,819
£105,718
£48,844
£22,926
£4,106
£46,236
Transcribed Image Text:(a) You are required to calculate the following ratios:
Current Ratio
Quick Ratio
Cash Ratio
Debt to Equity Ratio
Debt Ratio
Receivables Turnover Ratio
Inventory Turnover Ratio
Gross Margin
Operating Profit Margin
Net Margin
b) After calculating all 10 ratios, explain how the above results can aid ABC Inc's
decision making process.
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