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All-You-Need Store Ltd operates a chain of convenient stores in the town. In the past the business had expanded rapidly and covered almost all
All-You-Need Store Ltd operates a chain of convenient stores in the town. In the past the business had expanded rapidly and covered almost all bustling streets in the town. However, recently company's peformance is getting worse and profit keeps declining steadily. The company was forced to closed some of their stores in downtown. Company has received more complaints from customers showing their negative feelings toward store's service quality. If several years ago the customer complaint rate was as low as at 2.0 complaints for every 1000 customers now it is around 5 for very 1000 customers. Employees also show their disatisfaction about working environment Senior managers are really concerned about recent business performance of the company. They decided to investigate the problems and try to correct any derailment in company's strategy implementation. With the support of functional departments, the information on the financial performance is prepared and reported to the board of directors. A consulting firm was hired to conduct surveys on customers and employees. The surveys revealed some key information about the current business operation of the company. (See appendices) Required a. Using the financial data provided, calculate the following ratios for the last two years of business and present your findings in a table; Gross profit margin . Net profit margin Return on capital employed The current ratio The quick ratio Inventory turnover period Accounts payable payment period Gearing ratio Earnings per share Dividend payout ratio
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