XY Bhd, a quoted company, manufactures electronic components. The accounting statements for the most recent year are summarized below. Fixed assets are shown at historical cost, net of depreciation. Balance Sheet as at 31 October 2019 RM'mil RM'mil RM'mil Fixed assets Land & premises 12 Equipment 28 40 Current assets Stocks 14 Debtors 15 Cash 1 30 Less : Current Liabilities Trade creditors 20 Bank overdraft 5 25 5 Total assets less current liabilities 45 Financed by Issued share capital (10m par value RM0.50) 5 Share premium 2 Retained earnings 8 15 Long-term liabilities 10% debentures 2024 30 45 Income statement for the year ended 31 October 2019 RM'mil Sales 110. 0 Cost of sales (97.0 ) Operating profit 13.0 Interest charges (4.0) Profit before tax 9.0 BBBA 2054_PMACRO_ JAN 2020-HOME BASED FINAL EXAM 3 Tax (3.6) Profit after tax 5.4 Dividends (0.4) Retained profits 5.0 Note 1 : The following information is available for the industry in which XY Bhd operates. Financial Statistics - Industry Averages Return on capital employed 24% Return on shareholders capital 15% Operating profit margin 10% Current ratio 2 : 1 Acid test 1 : 1 Debtors days 30 days Gearing (total debt : total equity) 80% by book value Interest cover 5 times Price earnings (P/E) ratio 14 times Note 2 : XY Bhd shares are currently trading at RM4.50 each. Note 3 : When calculating gearing use the book value of total debt (including bank overdraft) as a percentage of the book value of equity. Required : Calculate similar ratios as given for the industry averages and evaluate the financial performance of XY Bhd compared to the industry.