QUESTION 1 Summary financial information for Company NOD Plc is given below, covering the last two years 2019 000 4,125 2,880 Income Statements for the year ending 31 December 2020 000 Revenue 5,008 Cost of sales 3,653 PBIT(Profit before interest&tax) 1,355 Interest 133 Taxation 489 PAIT(Profit after interest&tax) 733 1,245 107 459 679 Statements of Financial Position as at 31 December 000 000 000 000 Non-current assets 5,761 5,534 Current assets Inventory 684 Trade receivables 1,033 342 550 Total assets 1,717 7,478 892 6,426 Current liabilities Trade payables 933 Overdraft 550 533 133 1,483 666 Equity Ordinary shares@1 per share 2,667 Reserves 1,500 2,667 1,264 4,167 3,931 Non-current liabilities 7% Bonds Total equity&liabilities 1,828 7,478 1,828 6,426 QUESTION 1 (continued) Average ratios of the industry in 2020 are as follows: Current ratio Quick ratio Inventory days Trade receivables days Trade payables days Sales revenueet working capital 1.5:1 1:1 55 days 50 days 80 days 15 times 2020 3.40 2019 3.00 Share price Required: Evaluate NOD's financial performance in 2020 by comparing to 2019 with the following ratios a) b) c) d) Profitability ratios - ROCE, Operating profit margin; Liquidity ratios - Current ratio, Quick ratio; Debt ratios - Gearing ratio, Interest cover; Activity ratios - Inventory days, Trade receivables days, Trade payables days, Working capital cycle (WCC); Investment ratios - EPS, P/E ratio. e) Note: Industry average ratios could be used for analysis purpose. (25 marks) f 11 2069 M BE