The following information has been extracted from the financial statements of Itada Projects Limited:

Extract of Statement of Comprehensive Income for the year ended 31 December

		2019		2018
		R		R
	Revenue	2 000 000		1 600 000
	Purchases	940 000		800 000
	Operating profit	600 000		520 000
	Profit before tax	520 000		450 000
	Profit after tax	364 000		315 000

Extract of Statement of Financial Position as at 31 December

Assets	2019		2018
	R		R
Non-current assets	2 000 000		1 400 000
Inventories	600 000		800 000
Accounts receivable	400 000		400 000
Cash and cash equivalents	2 000		2 000
	3 002 000		2 602 000
	R		R
Equity and liabilities
Shareholders equity	2 000 000		1 500 000
Long-term loan	700 000		800 000
Accounts payable	182 000		142 000
Bank overdraft	120 000		160 000
	3 002 000		2 602 000

Note:

1. All purchases and revenue are on credit.
2. Dividends paid during the year amounted to R218 400.
3. The issued share capital consisted of 500 000 ordinary shares.

Required:

Calculate the following ratios for the year ended December 2019. Where applicable, round off answers to two decimal places.

1.1 Operating margin

1.2 Debtors collection period

1.3 Acid test ratio

1.4 Return on equity

1.5 Debt to equity

1.6 Earnings retention ratio

1.7 Earnings per share

2.1 Determine two (2) ways in which Itada Limited can improve on its collections from debtors. 2.2 Comment on the current ratio which dropped from 3.98:1 in 2018 to 3.32:1 in 2019.

2.3 Assess two (2) ways in which Itada Limited can improve its profitability.