Evaluate the profitability, liquidity position and cash conversion cycle of company A for the two years. Include calculations for the two years. Assume all sales are made on credit.

2017 2016

- Profitability ( Gross Profit % and Pre-tax %)

- Liquidity (Current Ratio and debt Ratio

- Cash conversion cycle

m m Revenue 13,324 2,512 Cost of Sales 12,278 2,025 Gross Profit 1,046 487 Administration Expenses 250 300 Trading Profit (= Operating Profit) 796 187 Finance Income (= Interest Receivable) (44) Finance Costs (= Interest Payable) 132 136 Profit Before Taxation 708 51 Taxation 234 17 Profit Attributable to Equity Shareholders 474 34