Using the provided information answer the following questions. The following results relate to Life Healthcare Ltd, a private hospital group of companies, for the year ended 30 September 2012: 2012 2011 Sales R10 937m R9 812m Net Profit R1 743m R1 492m Total assets R9 256m R8 468m Equity R3 941m R3 518m 5.1 What does it mean if a business is solvent? 5.2 Describe the 3 key drivers of return on equity for a company. In other words, describe the three areas that a company focus on in order to maximise shareholders' wealth? 5.3 Calculate the asset efficiency (return on assets) for Life Healthcare Ltd for 2012. Provided that in (2011: 1.16 times). Comment on the movement in asset efficiency between the two years, and briefly indicate the reasons for the change. 5.4 Calculate the profitability or margins (net margin) of Life Healthcare Ltd for 2012 given that in 2011 it was 15.2% and comment on the movement and briefly indicate the reason for the change. 5.5 5.6 What is the significance of the Du Pont Analysis?

Using the provided information answer the following questions. The following results relate to Life Healthcare Ltd, a private hospital group of companies, for the year ended 30 September 2012: 2012 2011 Sales R10 937m R9 812m Net Profit R1 743m R1 492m Total assets R9 256m R8 468m Equity R3 941m R3 518m 5.1 What does it mean if a business is solvent? 5.2 Describe the 3 key drivers of return on equity for a company. In other words, describe the three areas that a company focus on in order to maximise shareholders' wealth? 5.3 Calculate the asset efficiency (return on assets) for Life Healthcare Ltd for 2012. Provided that in (2011: 1.16 times). Comment on the movement in asset efficiency between the two years, and briefly indicate the reasons for the change. 5.4 Calculate the profitability or margins (net margin) of Life Healthcare Ltd for 2012 given that in 2011 it was 15.2% and comment on the movement and briefly indicate the reason for the change. 5.5 5.6 What is the significance of the Du Pont Analysis?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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