. Calculate the following ratios for 2019. The industry average for similar businesses is also provided.

Industry average

1. return on assets 22.0%

2. return on ordinary equity 20.0%

3. profit margin 4.0%

4. earnings per share 45c

5. priceearnings ratio 12.0

6. dividends yield 5.0%

7. dividend pay-out 70%

8. current ratio 2.5:1

9. quick ratio 1.3:1

10. receivables turnover 13.0

11. inventory turnover 6.0

12. debt ratio 40.0%

13. times interest earned 6.0

14. asset turnover 1.8

B. Given the above industry averages, comment on the companys profitability, liquidity and use of financial gearing.

C. Discuss the limitations of ratios analysis.