The following information is extracted from the accounts of a construction company:

	(All figures in 000)
Turnover		6,800
Cost of goods sold		5,200
Net Profit		568
Fixed Assets		500
Stocks		1,400
Debtors		900
Cash at Bank		-
Creditors		1,300
Overdraft		900

Capital and reserves 600

1. Calculate the following ratios:

• • Gross Profit Margin
  • Return on capital employed
  • NPBIT to sales ratio
  • Debtors collection period in days
  • Dividend Cover
  • Stock Holding Period
  • Current ratio
  • Liquidity ratio
• On further examination of the company accounts, it becomes evident that the company occupies its own headquarters building which is valued at 2,400,000 although it is in the balance sheet at cost less depreciation. Stocks are of raw materials and work in progress including a property which has since been sold at a good profit. The overdraft is secured on the property and is for normal operating requirements +550,000 for the property mentioned above. Creditors include 300,000 tax not payable for nine months and 200,000 dividend not payable for six months. Discuss briefly the financial performance and liquidity of the firm revealed by the financial ratios in light of this new information.