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 allbustling 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

1. 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

Appendix A. The financial statements for All-You-Need Store Ltd

Income statements for the years ended 31 December

	2022 000	2021 000
Sales revenue	1,200	1,180
Cost of sales	(750)	(680)
Gross profit	450	500
Operating expenses	(208)	(200)
Depreciation	(75)	(66)
Operating profit	167	234
Interest	(8)	-
Profit before taxation	159	234
Taxation	(48)	(80)
Profit for the year	111	154

Statement of financial position as at 31 December

ASSETS	2022 000	2021 000
Non-current assets
Property, plant and equipment	687	702
Current assets
Inventories	236	148
Trade receivables	156	102
Cash	4	3
	396	253
Total assets	1,083	955
EQUITY AND LIABILITIES
Equity
Share capital: 1 shares fully paid	500	500
Retained earnings	295	256
	795	756
Non-current liabilities
Borrowings - Bank loan	50	-
Current liabilities
Trade payables	76	60
Other payables and accruals	16	18
Taxation	24	40
Short-term borrowings (bank overdraft)	122	81
	238	199
Total equity and liabilities	1,083	955

Dividends were paid on ordinary shares of 70,000 and 72,000 for 2021 and 2022, respectively.