Below is the overal Performance of Warmart for 2020. make an overall analysis on how it performed describing the ratios used and their interpretations. put in suggestions on how the performance could be improved. You should create a reason for undertaking the analysis, for example assessing an investment opportunity, acquisition or are you a potential customer.

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
icon
Related questions
Question

Below is the overal Performance of Warmart for 2020. make an overall analysis on how it performed describing the ratios used and their interpretations. put in suggestions on how the performance could be improved. You should create a reason for undertaking the analysis, for example assessing an investment opportunity, acquisition or are you a potential customer.

Overview
Sales Revenue ($m)
Profit before interest and taxes ($m)
Profit for the year ($m)
Dividend for the year ($)
Operating Cash Flow ($M)
Capital Investiment ($m)
Total Debt (SM)
Basic Number of Shares
Employees (people)
Market Price Per Share
Performance
Gross margin
Operating margin
Asset turnover
Return on Capital Employed
Sales per employee
Profit per employee
Working capital
For the year 31/12/2020
Inventory days
Debtor days
Trade creditor days
523,964
20,568
14,881
2.1
25255
10761
44,289
2,850.000
$105.98
For the year 31/12/2020
24.7%
3.93%
3.30
13.0%
$238,165.45
$ 6,764.09
For the year 31/12/2020
41.1
4.38
43.4
Transcribed Image Text:Overview Sales Revenue ($m) Profit before interest and taxes ($m) Profit for the year ($m) Dividend for the year ($) Operating Cash Flow ($M) Capital Investiment ($m) Total Debt (SM) Basic Number of Shares Employees (people) Market Price Per Share Performance Gross margin Operating margin Asset turnover Return on Capital Employed Sales per employee Profit per employee Working capital For the year 31/12/2020 Inventory days Debtor days Trade creditor days 523,964 20,568 14,881 2.1 25255 10761 44,289 2,850.000 $105.98 For the year 31/12/2020 24.7% 3.93% 3.30 13.0% $238,165.45 $ 6,764.09 For the year 31/12/2020 41.1 4.38 43.4
Working capital
Inventory days
=Debtor days
6
Trade creditor days
Liquidity
Current ratio
-Acid test
Solvency
= Interest cover
Gearing
Shareholder's view
Return on equity
Dividend Cover
Earnings per share
P/E ratio
For the year 31/12/2020
41.1
4.38
43.4
For the year 31/12/2020
$
0.79
0.22
For the year 31/12/2020
9.3
0.59
For the year 31/12/2020
20.4%
241.36
5.22
20.30
Transcribed Image Text:Working capital Inventory days =Debtor days 6 Trade creditor days Liquidity Current ratio -Acid test Solvency = Interest cover Gearing Shareholder's view Return on equity Dividend Cover Earnings per share P/E ratio For the year 31/12/2020 41.1 4.38 43.4 For the year 31/12/2020 $ 0.79 0.22 For the year 31/12/2020 9.3 0.59 For the year 31/12/2020 20.4% 241.36 5.22 20.30
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education