During the year to 31 December 2019, Tinderlake Ltd attempted to stimulate sales and increase its profits by reducing selling prices, holding larger inventories and giving customers longer credit. All of the company's purchases and sales are on credit terms. Summarised financial statements for the year to 31 December 2019 (with comparative figures for 2018) are as follows: 

Ordinary dividends of £480,000 were paid during the year to 31 December 2019. 

Required: 

Calculate the following ratios for Tinderlake Ltd for each of the two years concerned and comment on the results of these calculations: 

(a) Return on capital employed 

(b) Return on equity 

(c) Gross profit margin 

(d) Net profit margin 

(e) Current ratio 

(f) Quick assets ratio 

(g) Inventory holding period 

(h) Receivables collection period 

(i) Capital gearing ratio.

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Tinderlake Ltd Statements of comprehensive income for the year to 31 December Sales revenue Cost of sales Gross profit Operating expenses Profit before interest and taxation Interest payable Profit before taxation Taxation Profit after taxation 2019 £000 5,327 4,420 907 87 820 130 690 135 555 2018 £000 3,725 2,905 820 75 745 20 725 145 580