Ratio analysis

Calculate liquidity and working capital ratios from the accounts of a manufacturer of products for the construction industry, and comment on the ratios. 20X8 20X7 $m $m Turnover 2,065.0 1,788.7 Cost of sales 1,478.6 1,304.0 Gross profit 586.4 484.7 Current assets Inventories 119.0 109.0 Receivables (note 1) 400.9 347.4 Short-term investments 18.8 Cash at bank and in hand 48.2 48.0 572.3 523.2 Payables: amounts falling due within one year Loans and overdrafts 49.1 35.3 Corporation taxes 62.0 46.7 Dividend 19.2 14.3 Payables (note 2) 370.7 324.0 501.0 420.3 4.2 $m 71.3 $m 102.9 Net current assets Notes 1 Trade receivables 2 Trade payables 329.8 236.2 285.4 210.8