Calculating ratioscomparing the health of the company against its past and peers. focus more on the interpretation and analysis of the ratios. Cover at least 4 ratios; one of them must be an analysis of the return on assets using the Du Pont System.

-Calculated the ROA using the Du Pont system and provide a strong analysis of the Du Pont ROA, explaining the different component and how it contributes to getting the ROA. (The company is OLAM, an agricultural company)

Balance Sheets As at 31 December 2019 Group 2019 $'000 2018 $'000 Company 2019 $'ooo 2018 $'000 Note 11 5,809,948 10,722 10 6,186,963 577,589 1,165,231 531,178 8,898 53,524 292,103 12 290,058 1,199,912 511,931 13 Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Biological assets Subsidiary companies Deferred tax assets Investments in joint ventures and associates Long-term investment Other non-current assets 14 9,004,517 7.001,031 9 15 183,273 661,105 71,503 44,956 9,421,798 16 166,785 691,692 135,777 27,786 8,543,831 439,099 135,777 403,708 71,503 2,019 9,836,272 22 7,876,687 17 Current assets Amounts due from subsidiary companies Trade receivables Inventories Advance payments to suppliers Advance payments to subsidiary companies Cash and short-term deposits Derivative financial instruments Other current assets 2,316,519 7,211,465 563,537 2,435,168 6,468,157 805.472 18 20 21 21 34 35 22 2,435,290 991,427 1,985,021 92,669 358,804 1,200,479 1,374,556 313,603 8,751,849 3,988,713 1,307,958 1,608,225 44,457 1,816,605 891,379 1,317,899 205,968 11,181,204 3,179,584 1,847,715 1,129,743 16,248,563 2,480,374 1,835,043 878,772 14,902,986 23 (2,352,435) (168,499) (2,891,457) Current liabilities Trade payables and accruals Margin accounts with brokers Borrowings Lease liabilities Derivative financial instruments Provision for taxation Other current liabilities 19 25 25 35 (3,983,485) (3,633,860) (12,961) (121,017) (6,675,458) (4,766,411) (82,032) (10.710) (1,162,135) (928,631) (259,077) (151,994) (596,936) (456,399) (12,772,084) (10,069,022) 3,476,479 4,833,964 (2,174,563) (110,918) (3,597,553) (18,513) (959,691) (26,037) (88,214) (6,975,489) 1,776,360 24 (688,823) (26,954) (100,003) (6,228,171) 4,953,033 9 Net current assets Non-current liabilities Deferred tax liabilities Borrowings Lease liabilities Other non-current liabilities (422,625) (1,893) (6,407,718) (3,082,230) (83,396) (35,308) (2.957) (4,478,115) 25 25 24 (502,031) (5,403,423) (435,068) (17,695) (6,358,217) 6,540,060 (6,913,739) 6,464,056 (3,119,431) 8,493,201 (4,481,072) 8,348,648 Net assets Equity attributable to owners of the Company Share capital Treasury shares Capital securities Reserves 27 27 27 3,748,994 (158,807) 1,045,867 1,795,934 6,431,988 108,072 6,540,060 3,748,994 (166,280) 1,046,406 1,696,246 6,325,366 138,690 6,464,056 3,748,994 (158,807) 1,045,867 3,857,147 8,493,201 3,748,994 (166,280) 1,046,406 3,719,528 8,348,648 Non-controlling interests Total equity 8,493,201 8,348,648 Consolidated Statement of Comprehensive Income For the financial year ended 31 December 2019 Group 2019 $'000 2018 $'000 323,193 Profit for the financial year 525,162 Other comprehensive income Items that may be reclassified subsequently to profit or loss: Net gain/(loss) on fair value changes during the financial year Recognised in the profit and loss account on occurrence of hedged transactions Foreign currency translation adjustments Share of other comprehensive income of joint ventures and associates 93,243 (105,532) (87,369) (5,948) (105,606) (72,544) (2,474) (43,473) (33,940) (152,431) Items that will not be reclassified subsequently to profit or loss: Net fair value loss on equity instrument at fair value through other comprehensive income (64,274) (121,742) (169,880) 355,282 (274,173) 49,020 Other comprehensive income for the year, net of tax Total comprehensive income for the year Attributable to: Owners of the Company Non-controlling interests 402,344 (47,062) 355,282 87,778 (38,758) 49,020 Consolidated Profit and Loss Account For the financial year ended 31 December 2019 Note 4. 5 6 13 Sale of goods and services Other income Cost of goods sold Net gain from changes in fair value of biological assets Depreciation and amortisation Other expenses Finance income Finance costs Share of results from joint ventures and associates Profit before taxation Income tax expense 10, 11, 12 7 Group 2019 2018 $'000 $'000 32,992,722 30,479,056 531,537 87,742 (30,055,135) (27,985,803) 1,857 61,270 (500,334) (392,836) (1,822,637) (1,462,564) 88,649 79,689 (628,381) (548,464) 67,872 62,525 676,150 380,615 (150,988) (57,422) 8 9 525,162 323,193 Profit for the financial year Attributable to: Owners of the Company Non-controlling interests 564,157 (38,995) 525,162 347,870 (24,677) 323,193 Earnings per share attributable to owners of the Company (cents) Basic Diluted 26 9.20 15.98 15.79 26 9.08