Using the attached financial statements of Aspen 2017 and 2018 compute liquidity, profitability, and activity and leverage ratios and then answer the following questions.What do liquidity, profitability activity and leverage ratios tell us about Aspen What is it that this analysis is not telling us about Aspen?What are the issues that limit the importance of ratio analysis?
celebrating 20 years celebrating 20 years Group statement of financial position Group statement of comprehensive income for the year ended 30 June 2018 at 30 June 2018 2018 2017 2018 2017 Notes R'million A'million Notes R'million R'milion Revenue 21 12 596 41 213 Assets Cost of sales (20 991) (21 317) Non-current assets 21 60 19 896 Intangible assets 72 163 60 006 Gross profit Property, plant and equipment 11 368 Selling and distribution expenses 7 46 6 720 9 749 6 126 Administrative expenses 3 103) (27801 Goodwill 345 Deferred tax assets 986 987 Other operating income 419 2 224) 2 420 Contingent environmental indemnification assets 802 747 Other operating expenses Other non-current assets 1 189 801 Operating profit 237 8 321 Total non-current assets 92 614 78 230 Investment income 343 287 Financing costs 2 235) (2 369) Current assets operating profit after investment income and financing costs 345 6 239 Inventories 14 49 13 611 51 13 Receivables and other current assets 14 42 13 572 Share of after-tax net profits from joint ventures Cash and cash equivalents 11 170 10 707 Profit before tax 396 6 252 27 (1 124) Total operating current assets 10 08 37 910 (1 385) 6 011 5 128 Assets classified as held for sale 10 135 200 Profit for the year Total current assets 40 232 $5 110 Other comprehensive income, net of tax* Total assets 32 83 116 340 Net (losses)/gains from cash flow hedging in respect of business acquisitions (96) 188 Currency translation gains/(losses) 372 (3521) Shareholders' equity 37 052 32 354 Reme ment of retirement and other employee benefit obligations 44 Retained income 1 839 Non-distributable reserves 11 05 8774 Total comprehensive income 8 288 Share capital (net of treasury shares) 1905 1 929 Profit for the year attributable to Share-based compensation reserve 60 54 Equity holders of the parent 6 010 5 128 Ordinary shareholders' equity 0 067 3 111 Non-controlling interests Non-controlling interests 12 27 6 011 5 128 Total shareholders' equity 50 095 13 138 Total comprehensive income attributable to 8 287 1 839 Liabilities Equity holders of the parent Non-current liabilities Non-controlling interests Borrowings 46 725 8 978 8 288 1 839 Other non-current liabilities 2775 4 281 Unfavourable and onerous contracts 1 382 1 635 Earnings per share 2 213 2 085 Basic earnings per share (cents) 28 1 316,6 1 123,4 Deferred tax liabilities 802 28 747 Diluted earnings per share (cents) 1 316.6 1 123,4 Contingent environmental liabilities Retirement and other employee benefit obligations 635 Remeasurement of retirement and other employee benefit obligations will not be reclassified to profit and loss. AN other items in other comprehensive income may be reclassified to profit and loss. Total non-current liabilities 54 532 Current liabilities Borrowings 11 225 18 840 Trade and other payables 10 41 10 257 Other current liabilities 6 196 5 341 Unfavourable and onerous contracts 374 318 Total current lishilities 28 20 31 805 Total Fabilities 82 74 73 212 Total equity and liabilities 132 836 116 340 Aspen Pharmacare Holdings Limited Atrial Financial Statements 301 18 19 Amrin Financial Statements an18
