Performance Gross margin Operating margin Asset turnover Return on Capital Employed Sales per employee Profit per employee Working capital Inventory days Debtor days Trade creditor days Liquidity Current ratio Acid test Solvency Interest cover Gearing Shareholder's view Return on equity Dividend Cover For the year For the year 30/6/2017 30/6/2016 30/6/2015 70.1% 25.40% For the year 0.66 16.8% 122.2 36.91 38.6 30/6/2017 For the year 30/6/2017| 30/6/2016 30/6/2015 4.40 £229,006 €194,641 €184,185 £58,160 £52,515 £58,474 3.73 For the year 30/6/2017| 70.2% 70.5% 26.98% 31.75% 16.9 0.01 0.58 15.6% 13.8% 2.03 140.4 41.66 30.3 3.59 3.00 0.63 20.0% 0.08 30/6/2016 30/6/2015 14.3% 170.0 33.52 2.07 40.1 30/6/2016| 30/6/2015 51.1 -122.9 4.77 3.83 30/6/2017 30/6/2016 30/6/2015 0.00 17.5% 2.26

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Using the calculated different ratios for Abcam in 2015 below. Comment on your result and contrast with the evolution in 2016 and 2017. At the end of each type of ratio, provide a short paragraph that gives a final note on the outlook for the company. Last, provide a final paragraph that summarise Abcam’s financial situation and give your recommendations to the management.

Performance
Gross margin
Operating margin
Asset turnover
Return on Capital Employed
Sales per employee
Profit per employee
Working capital
Inventory days
Debtor days
Trade creditor days
Liquidity
Current ratio
Acid test
Solvency
Interest cover
Gearing
Shareholder's view
Return on equity
Dividend Cover
For the year 30/6/2017 30/6/2016 30/6/2015
70.2%
26.98%
0.58
15.6%
For the year
For the year
70.1%
25.40%
0.66
16.8%
£229,006 £194,641
£58,160
122.2
36.91
38.6
30/6/2017
4.40
30/6/2017 30/6/2016 30/6/2015
3.73
16.9
0.01
13.8%
20.0%
€184,185
£52,515 £58,474
140.4
2.03
41.66
30.3
3.59
70.5%
3.00
31.75%
0.63
30/6/2016 30/6/2015
51.1
0.08
For the year 30/6/2017 30/6/2016 30/6/2015
-122.9
170.0
33.52
40.1
4.77
3.83
For the year 30/6/2017 30/6/2016 30/6/2015
14.3%
2.07
0.00
17.5%
2.26
Transcribed Image Text:Performance Gross margin Operating margin Asset turnover Return on Capital Employed Sales per employee Profit per employee Working capital Inventory days Debtor days Trade creditor days Liquidity Current ratio Acid test Solvency Interest cover Gearing Shareholder's view Return on equity Dividend Cover For the year 30/6/2017 30/6/2016 30/6/2015 70.2% 26.98% 0.58 15.6% For the year For the year 70.1% 25.40% 0.66 16.8% £229,006 £194,641 £58,160 122.2 36.91 38.6 30/6/2017 4.40 30/6/2017 30/6/2016 30/6/2015 3.73 16.9 0.01 13.8% 20.0% €184,185 £52,515 £58,474 140.4 2.03 41.66 30.3 3.59 70.5% 3.00 31.75% 0.63 30/6/2016 30/6/2015 51.1 0.08 For the year 30/6/2017 30/6/2016 30/6/2015 -122.9 170.0 33.52 40.1 4.77 3.83 For the year 30/6/2017 30/6/2016 30/6/2015 14.3% 2.07 0.00 17.5% 2.26
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