Delta Plc is a logistics company operating in Kent. The management of the company

presented the following summarised financial statement for the years ended $31$

December $2022$ and $2023.$

Statements of profit or loss and other comprehensive income for the year ended:

$20232022$

$000000$

Revenue $2,4301,638$

Cost of sales $(1701)(983)$

Gross profit $729655$

Administrative costs $(311)(180)$

Distribution Costs $(207)(177)$

Finance cost $(36)(6)$

Profit before taxation $175292$

Income tax expense $(54)(102)$

Profit for the year $121190$

Statement of Financial Position as at $31$ December

$20232022$

$000000000000$

Assets:

Non$-$current assets:

Property, plant &equipment $612369$

Intangible assets $270180$

Investment in shares of Tom Plc at cost $207$ Nil

$1,089549$

Current asset:

Inventory $120100$

Trade receivables $15070$

Other receivables Nil $270110280$

$1,359829$

Equity & Liabilities

Equity shares of $1$ each $390225$

Retained earnings $340270$

$730495$

Non$-$current Liabilities

$10\%$ secured loan $8080$

$12\%$ secured loan notes $260340$ Nil $80$

Current Liabilities:

Bank short term loan $4910$

Trade payables $190140$

Income tax payable $50289104254$

Total equity &liabilities $1359829$

The following additional information is relevant for the year ended $31$ December $2023.$

$($i$)$ Delta Plc acquired $60\%$ interest in equity shares of Tomtom Ltd$,$ who$$s main

business is commercial dairy production in order to diversify its business

portfolio and take advantage of the favourable incentives in agriculture

recently announced.

$($ii$)$ Delta Plc increased its customer base and its average revenue per customer

during the financial year.

$($iii$)$ No dividends were received from Tomtom Ltd$,$ and the value per share of

Delta$$s issued shares had not increased during the year ended $31$ December

$2023.$

Required:

Calculate the following ratios and use them to analyse Delta Plc$$s operating

performance during the year ended $31$ December $2023.$

i$.$ Asset turnover

ii$.$ Gearing ratio

iii. Debt$/$Equity ratio.

Statement of Financial Position as at $31$ December

The following additional information is relevant for the year ended $31$ December $2023.$

$($i$)$ Delta Plc acquired $60\%$ interest in equity shares of Tomtom Ltd$,$ who's main business is commercial dairy production in order to diversify its business portfolio and take advantage of the favourable incentives in agriculture recently announced.

$($ii$)$ Delta Plc increased its customer base and its average revenue per customer during the financial year.