Acca F7

Financial Reporting Course assignment Louis Boo Rui Xiu overdue date: 5 downslope 2011 Question 1 a) To : music director of Trinity From : accountant of Trinity catch : 5 Dec 2011 Title : financial performance and come in of Postica positivity and return Return on capital employed (ROCE) of 73% is in the average return par with early(a) akin company. The blunt profit borderline and the operating(a) profit margin of 42% and 29% also are in the superior general or average rate. However the difference of 13% is the richlyest compare with mistakable company. This was catch that Postica doesnt control his company operating expenses well. The addition upset of 2.52(73%/29%) is high compare with other. This show that Postica is using his asset well in generate sales. Although Postica is using well the asset in generate sales, the company extradite a misfortunate management in operating expenses. This was do the return of Post ica in the general range. Long term solvency and stability stakes dream up of 1.8 times is the lowest symmetry compare with other resembling company and it is high risk area. The normal pertain elevation should be at least 3 or more. The pitch ratio of 52% is also considered has high risk.

appurtenance ratio more than 50% agency the company has one-half or more of capital is from outsider. Postica must make genuine that the court of capital from outsider is able to turn out to asseverate company will not bankrupt. Working capital disorder of stemma of 4.4 times is high ratio compare with corresponding company. This means the sales of the company are fast and come abou t mellifluous in inventory. The company may! be runnel JIT system. The receivables solar daylight of 51 days is low compare with other. Shorter receivable day means the company collect okay the money from the receivable is fast. The company has a great management in liquidity. shareholder investment ratio 5.2 times of dividend keep on is the highest compare with other similar company. The company have high chance will pay dividend to...If you want to get a full essay, order it on our website: OrderEssay.net

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