Question
2.1 Gross profit margin 2022 = Sales - cost of sales/Sales ( 3 432 000 1 864 000/3 432 000 ) = Gross profit/Sales (
2.1 Gross profit margin
2022
= Sales - cost of sales/Sales ( 3 432 000 1 864 000/3 432 000 )
= Gross profit/Sales ( 1 568 000/3 432 000 )
= 46%
2021
= Sales - cost of sales/Sales ( 5 834 400 2 980 000/ 5 834 400 )
= Gross profit/Sales ( 2 854 400/5 834 400 )
= 49%
MTC decrease their profits by 3% from 2021 to 2022
2.2 Net profit margin
2022
= Net profit for the year Pref share dividends/Sales ( 705 600 300 000/ 3 432 000 )
= 405 6000/3 432 000
=12%
2021
= Net profit for the year Pref share dividends/Sales ( 1 240 400 600 000/ 5 834 400 )
= 640 400/5 834 400
=11%
MTCs net profit margin increases by 1% from 2021 to 2022
2.2 Net profit margin
2022
= Net profit for the year Pref share dividends/Sales ( 705 600 300 000/ 3 432 000 )
= 405 6000/3 432 000
=12%
2021
= Net profit for the year Pref share dividends/Sales ( 1 240 400 600 000/ 5 834 400 )
= 640 400/5 834 400
=11%
MTCs net profit margin increased by 1% from 2021 to 2022
2.3 Current ratio
2022
= Current assets/Current liabilities
=1 624 000/458 000
=3.54
2021
= Current assets/Current liabilities
=1 946 802/628 960
=3.09
MTCs current ratio increased from 2021 to 2022
2.4 Inventory turnover
2018
= Cost of goods sold/Inventory
=1 864 000/1 015 200
=1.8
2019
= Cost of goods sold/Inventory
=2 980 000/1 207 360
=2.4
MTCs inventory turnover decreased from 2021 to 2022
2.5 Debt ratio
2022
= Total Liabilities/Total Assets
=858 000/2 268 800
=.378
=37.8%
2021
= Total Liabilities/Total Assets
=1 288 960/2 886 592
=.446
=44.6%
MTCs debt ratio decreased from 2021 to 2021
2.6 Return on total assets
2022
= Profit for the year Pref share dividends/Total assets
= 705 600 300 000/2 268 800
=405 600/2 268 800
=17.8%
2021
= Profit for the year Pref share dividends/Total assets
= 1 240 000 600 000/2 886 592
=640 000/2 886 592
=22.1%
MTCs return on total assets decreased from 2021 to 2021
2.7 Return on Equity
2022
= Profit for the year Pref share dividend/Total equity Pref share capital
=705 600 300 000/1 410 800 300 000
=405 600/1 110 800
=36.5%
2021
= Profit for the year Pref share dividend/Total equity Pref share capital
= 1 240 000 600 000/1 597 632 600 000
=640 000/ 997 000
=64.1%
MTCs return on equity decresed significantly from 2021 to 2022
2.8 Pricing/earnings ratio
2022
= Market price ordinary share/Earnings per share
=5/70
=7.10
2022
= Market price ordinary share/Earnings per share
=5/100
=5
MTCs price/earnings ratio increased from 2021 to 2022
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A Complete Guide To Environmental Audits Self Policing For Environmental Protection
Authors: Elizabeth Glass Geltman
1st Edition
1570733813, 978-1570733819
