accounting report year one
flo00072
INAC_report_assessment_-_autumn_2019_-StatisticsFormulas.docx
Appendix C: Table of Comparative Statistics of Financial Ratios
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Financial Ratios |
Year Ending 31 December 2015 |
Year Ending 31 December 2016 |
Year Ending 31 December 2017 |
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ElijaFoods |
Major Competitor |
Industry Average |
ElijaFoods |
Major Competitor |
Industry Average |
ElijaFoods |
Major Competitor |
Industry Average |
|
1 |
Acid Test Ratio (no. of times) |
1.0 |
1.8 |
2.2 |
1.2 |
2.4 |
2.5 |
- |
2.2 |
2.5 |
|
2 |
Current Ratio (no. of times) |
3.0 |
3.6 |
4 |
3.2 |
3.0 |
3.8 |
- |
2.4 |
3.0 |
|
3 |
Inventory Days (No. of Days) |
51 |
50 |
54 |
53 |
58 |
56 |
|
45 |
52 |
|
4 |
Debtor Days (No. of Days) |
62 |
62 |
58 |
60 |
50 |
52 |
- |
70 |
60 |
|
5 |
Creditor Days (No. of Days) |
65 |
55 |
50 |
62 |
48 |
50 |
- |
50 |
52 |
|
6 |
Profit margin (%) (Net Profit Before Tax) |
8.8 |
9 |
9 |
9 |
9 |
9.1 |
- |
8.5 |
7 |
|
7 |
Gross Profit margin (%) |
38 |
38 |
42 |
40 |
42 |
40 |
- |
50 |
40 |
|
8 |
Return on Capital Employed (%) |
23 |
24 |
19 |
25 |
23 |
18 |
|
26.5 |
22 |
Appendix D: Ratio formulas:
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Ratio |
Formula |
|
Ratio |
Formula |
|
1 |
Gross profit margin |
(Gross Profit/Sales Revenue)*100 |
5 |
Inventory Days |
Inventory / Cost of Sales * 365 |
|
2 |
Net profit margin |
(Net Profit/Sales Revenue)*100 |
6 |
Debtor Collection Days |
(Trade Receivables/Credit Sales)*365 |
|
3 |
Return on Capital Employed |
Net profit / Capital Employed * 100 |
7 |
Creditor Days |
(Trade Payables/Cost of Sales)*365 |
|
4 |
Current Ratio |
Current Assets/Current Liabilities |
8 |
Acid Test Ratio |
(Current Assets – Inventory)/Current Liabilities |
Credit sales = Sales
