Task B Calculate the Operating Profit/Loss % and the Profit/Loss after Tax % for 2020 and 2019 for Rolls Royce Holdings Pic. Comment on the ratios you have calculated and their changes over the two years. (25 marks) Task C Calculate Gearing and Debt ratios for 2020 and 2019 Rolls Royce Holdings Plc. Comment on the ratios you have calculated and the changes over the two years. (25 marks) Task D 1. What do we mean by the term "financial Position" of a business? State briefly why this is important to businesses. (5 marks) 2. Calculate the Cash Conversion Cycle for Rolls Royce Holdings Plc for the years 2020 and 2019 (30 marks) 3. Comment on the ratios you have calculated and the changes over the two years. (5marks) (Total Marks 90) 24 EQUITY Called up share capital 1,674 Share premium 1,012 Capital redemption reserve 162 Cash flow hedging reserve (94) Merger reserve 650 Translation reserve 524 Accumulated losses (8,825) Equity attributable to ordinary shareholders (4,897) Non-controlling interests 22 TOTAL EQUITY (4,875) The Financial Statements on pages 106 to 176 were approved by the Board on 11 March 2021 and signed on its behalf by: Warren East Stephen Daintith Chief Executive Chief Financial Officer 386 319 159 (96) 650 397 (5.191) (3.376) 22 (3,354 108 BOLLS ROYCE SOLONS CURL REPORT 2010 Consolidated balance sheet At 31 December 2020 31 December 2020 Em S1 December 2019 Notes 9 10 11 15 13 21 5 25 ASSETS Intangible assets Property, plant and equipment Right-of-use assets Investments - joint ventures and associates Investments - other Other financial assets Deferred tax assets Post-retirement scheme surpluses Non-current assets Inventories Trade receivables and other assets Contract assets Taxation recoverable Other financial assets Short-term investments Cash and cash equivalents Current assets Assets held for sale TOTAL ASSETS 5.145 4,515 1,405 394 19 687 1,826 907 14,898 3,690 5,455 1,510 117 107 14 5,442 4.803 2.009 402 14 467 1,887 1.170 16,194 4,320 5,065 2,095 39 86 6 4,443 16.054 18 32,266 15 16 21 21 17 3,452 14,331 288 29,517 LIABILITIES Borrowings and lease abilities Other financial liabilities Trade payables and other liabilities Contract liabilities Current tax liabilities Provisions for liabilities and charges Current liabilities Borrowings and lease liabilities Other financial liabilities Trade payables and other liabilities Contract liabilities Deferred tax labilities Provisions for liabilities and charges Post-retirement scheme deficits Non-current liabilities Liabilities associated with assets held for sale TOTAL LIABILITIES CINNE (1,272) (608) (6,653) (4,187) (154) (826) (13,700) (6,058) (5,046) (1.922) (6,245) (494) (1,119) (1,580) (20,464) (228) (34,392) (775) (493 (8.450) (4.228 (172) 1858) (14.976) (4.910) (3,094) (2,071) (6.612) (618) (1.946) (1,378) (20,629) (15) (35,620) 28 (4,875) (3.354) 24 NET LIABILITIES EQUITY Called-up share capital Share premium Capital redemption reserve Cash flow hedoing reserv Merger reserve Translation reserve 1,674 1,012 162 (94) 650 524 386 519 159 (96) 650 397 Consolidated income statement For the year ended 31 December 2020 2019 Notes 2 Revenue Cost of sales v2 Gross (loss/profit Commercial and administrative costs Research and development costs Share of results of joint ventures and associates Operating loss (Lossgain arising on acquisition and disposal of businesses Loss before financing and taxation 2020 Em 11,824 (12,034) (210) (808) (1.254) 191 (2,081) (14) (2,095) 3 16,587 (15,645) 942 (1,128) (770) 104 (852) 139 (713) 15 28 2 4 Financing income Financing costs Net financing costs 67 (882) (815) 252 (430) (178) Loss before taxation Taxation Loss for the year 5 (2,910) (259) (3,169) (899 (420) (1,311) Attributable to Ordinary shareholders Non-controlling interests Loss for the year Other comprehensive expense Total comprehensive expense for the year Loss per ordinary share attributable to ordinary shareholders: Basic Diluted Underlying earnings per ordinary share are shown in note 6 (3,170) 1 (3,169) (265) (5,434) (1.315) 4 (1,311) (1,013) 12,324) (52.95) (52.95p 123.70p (23.70)p 21 Payments to ordinary shareholders in respect of the year: Pence per share Total 1.62 87 Underlying Ross/profit before taxation 2 (5,958) 583 Included with cost of sales commercial and administrator conta and research and development com ara es relating to ingements and witte-offs wing as a result of the financial and operational impact of COVID-19 plus other maten met and provions related to the fundamental restructuring activity announced on 20 May 2020 to me and the Group have been recorded and reflecting the impact of COVID 19 and the work the Group has performed to reduce levels and improve the tabuty roles then 1000 provide has been died in the prevaricatori che led to the Town 1000 and Treat 900 Chiropas programa andet ended within and connescial and administrative conti further details be found to: 2.09 and 22 31 J. Mar was of Sty 2020. Trionery was post egons alon 7 May 2020 and Stardised of on July 2010 Gs Gels que encary 2000 KG SA de 2.000 and Swatch System Lead was scoured on December 2020. She proceeds on alor period dapat have been adjusted during the Commercial Marine was doonor 2010 and Rolls Royce Power Development ined was dispod or on 15 April 2013. Further details can be found in note 2 Included within financing costs are fult value changes on derivative contracts. Further details can be found in otet 2.4 and 21 Low/profe before tastion discated on a statutory and undering ball Further details can be found in rote 2 The comparative us for earnings per share and payment to shareholders per shat have been adjusted to reflect the bondesart of the right note 6. Asarut the COVO-19 pondent, the Directions concelled the proposed final payment to shareholders of 24p ladjustadi per