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Would you buy shares in Blackmores Ltd? Discuss your reasons why, using only the liquidity, solvency, and profitability ratios you have calculated as justification. Liquidity
Would you buy shares in Blackmores Ltd? Discuss your reasons why, using only the liquidity, solvency, and profitability ratios you have calculated as justification. |
Liquidity Ratios | ||
Current Ratio = Current Assests/ Current Liabilities = 305,526.0/150,509.0 | 2.03 | |
Current cash debt coverage= Net cash provided by operating activities/ Average current liabilities = 19,832.0/ ((150,509.0 +174,467.0)/2) | 0.12 | |
Solvency Ratios | ||
Debt to Total Assets Ratio= Total liabilities/ Total assets = 283,209.0/490,928.0 | 0.58 | |
Cash debt coverage= Net cash provided by operating activities/ average total liabilities = 19,832.0/ ((283,209.0+ 271,520.0)/2) | 0.07 | |
Profitability Ratios | ||
Return on Assets Ratio = Profit after tax / Average total assets = 53,430.0/ ((490,928.0+464,850.0)/2) | 0.11 | |
Dividend payout = Dividends/Profit = 52,541.0/53,430.0 | 0.98 |
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