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a. Calculate the following ratios: i. Profitability ratios - Return on Capital Employed, Return on Equity, Gross profit margin and Net profit margin ii. Long
a. Calculate the following ratios:
i. Profitability ratios - Return on Capital Employed, Return on Equity, Gross profit margin and Net
profit margin
ii. Long term solvency and stability - Debt/Asset ratio, Gearing ratio and Interest cover
iii. Short-term solvency and liquidity Current ratio and Acid test ratio
iv. Efficiency (turnover ratios) Account receivable collection period, Account payable payment
period, Inventory turnover (times) (6 marks)
b. Prepare a report addressed to the Chief Executive Officer, assessing the relative performance and financial
position of Glory Ltd for the year ended 31st December, 2018
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