Worthing's Limited (the 'Group') is an international retail group that was established in South Africa predominant position in the high-end food and retail market in South Africa. The Group' operations in Australia. The 2023 financial year-end results have just been made available and the Group Financial Director (FD) is preparing for the forthcoming strategic meeting at which the executive management team, including all operational managers from South Africa, will review the Group's financial performance as well as its financial position, and will consider strategies to improve performance going forward. Historically the group has been successful and has consistently grown its operations over the past 60 years. However, in the past few years the company has had to contend with a sluggish economy, a very competitive retail environment and low consumer confidence. However, on the positive side in the last financial year inflation has been within the target range for the country and interest rates were cut by 50 basis points. Despite difficult operating conditions, the group's revenues for 2023 from continuing operations have increased to R28 813 million from R25 841 million in the previous financial year. The principal activities of the Group during the 2023 financial year continued to be the retail of clothing, general merchandise and food and the provision of logistics services. Despite the difficult trading conditions, sales growth is expected to equal that of the previous year for the foreseeable future, and the current gross profit margins are expected to be maintained due to a continued focus on the containment of trading costs. The Group's abridged statements of financial performance and financial position for 2023 and 2022 respectively are presented in Appendix A. The company has a 30 April financial year end. Comparative industry ratios: GP Margin 26.5\% Return on total assets 7.4% Return on Equity 23.9% Quick ratio 0.44:1 Current ratio 0.99:1 Inventory turnover 19.41 Total asset turnover 2.78 Debt to equity ratio 2.23 Also, assume all sales and purchases on credit. The Group's share is currently trading at R57.24c per share up from R41.08 at 30 April 2022. A long-term sustainable growth rate of 8% is considered appropriate given the Group's current financial structure and dividend policy. APPENDIX: A Consolidated Statement of Comprehensive Income Worthings Limited. Consolidated Statement of Financial Position Worthings Limited Required: PART A: Based on the information provided, analyse and evaluate ALL ASPECTS (liquidity, solvency, efficiency and profitability) of the Group for the 2023 financial year. Your answer should be supported by appropriate calculations and relevant ratios and should compare the performance of the group in 2023 to that of 2022, as well as industry norms. Your answer can also include other relevant ratios not covered in class. (Work percentages to 1 decimal place and ratios to 2 decimal places). (35 marks for ratios and calculations and 15 marks for discussion) PART B: Ratio analysis is a powerful tool for evaluating a company's financial performance, but it is not without limitations. Discuss the limitations of ratio analysis and the potential implications for financial decision-making. How can these limitations be addressed, and what other types of financial analysis could be used in conjunction with ratio analysis to provide a more complete picture of a company's financial health. Worthing's Limited (the 'Group') is an international retail group that was established in South Africa predominant position in the high-end food and retail market in South Africa. The Group' operations in Australia. The 2023 financial year-end results have just been made available and the Group Financial Director (FD) is preparing for the forthcoming strategic meeting at which the executive management team, including all operational managers from South Africa, will review the Group's financial performance as well as its financial position, and will consider strategies to improve performance going forward. Historically the group has been successful and has consistently grown its operations over the past 60 years. However, in the past few years the company has had to contend with a sluggish economy, a very competitive retail environment and low consumer confidence. However, on the positive side in the last financial year inflation has been within the target range for the country and interest rates were cut by 50 basis points. Despite difficult operating conditions, the group's revenues for 2023 from continuing operations have increased to R28 813 million from R25 841 million in the previous financial year. The principal activities of the Group during the 2023 financial year continued to be the retail of clothing, general merchandise and food and the provision of logistics services. Despite the difficult trading conditions, sales growth is expected to equal that of the previous year for the foreseeable future, and the current gross profit margins are expected to be maintained due to a continued focus on the containment of trading costs. The Group's abridged statements of financial performance and financial position for 2023 and 2022 respectively are presented in Appendix A. The company has a 30 April financial year end. Comparative industry ratios: GP Margin 26.5\% Return on total assets 7.4% Return on Equity 23.9% Quick ratio 0.44:1 Current ratio 0.99:1 Inventory turnover 19.41 Total asset turnover 2.78 Debt to equity ratio 2.23 Also, assume all sales and purchases on credit. The Group's share is currently trading at R57.24c per share up from R41.08 at 30 April 2022. A long-term sustainable growth rate of 8% is considered appropriate given the Group's current financial structure and dividend policy. APPENDIX: A Consolidated Statement of Comprehensive Income Worthings Limited. Consolidated Statement of Financial Position Worthings Limited Required: PART A: Based on the information provided, analyse and evaluate ALL ASPECTS (liquidity, solvency, efficiency and profitability) of the Group for the 2023 financial year. Your answer should be supported by appropriate calculations and relevant ratios and should compare the performance of the group in 2023 to that of 2022, as well as industry norms. Your answer can also include other relevant ratios not covered in class. (Work percentages to 1 decimal place and ratios to 2 decimal places). (35 marks for ratios and calculations and 15 marks for discussion) PART B: Ratio analysis is a powerful tool for evaluating a company's financial performance, but it is not without limitations. Discuss the limitations of ratio analysis and the potential implications for financial decision-making. How can these limitations be addressed, and what other types of financial analysis could be used in conjunction with ratio analysis to provide a more complete picture of a company's financial health