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a ) Calculate the 8 financial ratios for GCC Wholesale Plc ( Full accounts listed in the appendix ) Gorss profit margin Net profit margin
a Calculate the financial ratios for GCC Wholesale Plc Full accounts listed in the appendix
Gorss profit margin
Net profit margin
Asset turnover
Return on capital employeed ROCE
Current raio
Quick ratio
inventory days
Capital gearing
b Comment on the performance of GCC Wholesale Plc based on the ratios calculated in part a
c Do you think it is likely that GCC Wholesale might experience problems running the business with so little cash. Outline some of the challenges?
d Despite its drawbacks why do so many analysts rely on ratio analysis
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