Question
The assessment comprises of three tasks task 1, 2 & 3. Use the financial statement below to address tasks 2 & 3. UDG Healthcare plc
The assessment comprises of three tasks task 1, 2 & 3. Use the financial statement below to address tasks 2 & 3. UDG Healthcare plc Group Income Statement for the year ended 30 September 2020 UDG Healthcare plc Group Balance Sheet as at 30 September 2020 Task 2: Learning Outcomes 3 & 4 a) Discuss the business's financial performance using UDG Healthcare plc Group's financial statement above. To address this question in full, you may consider the following: I. Calculate and analyse the Return on Equity (ROE) using the DuPont method for 2019 and 2020. (5 marks) II. Calculate the Current Ratio and Debt to Equity ratios and discuss the company's liquidity and solvency position with the help of these ratios. (5 marks) III. Based on the ratios above, do you think UDG is a viable business? Justify your answer. (5 marks) Please note that the following are the industry averages for the ratios above. ROE: 8.2% Current Ratio: 2.1:1 Debt to Equity Ratio: 21.3%
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