AFE 5008-8 Financial Accounting Assignment Ratios Return on capital employed (%) CONUTINED Australia Ltd Paris Ltd 28 34.3 Gross profit percentage (%) 12 19.6 Operating profit percentage (%) 8.6 16.5 P/E ratio (times) 22 1.82 Quick/Acid ratio (times) 1.3 1.23 Inventory Tumover period (days) 8.5 12 Gearing ratio (%) 42 46 Eaming per shares (pence) 61 78 Interest cover (times) 6.8 7.4 c. Some accounting scholars believe that ratio analysis can only provide the restricted view of firm's financial performance and position. Discuss this statement with reference to examples. END OF QUESTION 3 (5 Marks) TOTAL 25 Marks]