The following are extracts from an industrial performance analysis for two groups, Alpha Group pic and Omega Group pic.
The two groups operate in different industrial sectors and have accordingly adopted different operating and financial strategies.

Required:
(a) A set of five key ratios of use in monitoring the operational performance of the two groups over three years. Show clearly your workings and justify the definitions of the inputs to your ratio calculations.
(b) A set of three key ratios of use in monitoring the financial structure of the two groups over three years. Show clearly your workings and justify the definitions of the inputs to your ratio calculations.
(c) Identify the contrasting operating and financing strategies of the two groups as revealed by your ratio analysis.
(d) For each group suggest an industrial sector for which such a strategy would give a best fit. Give reasons for your suggestions.
(e) List five ways in which financial statements could be improved in order to make them more useful as the basis for input to ratio analysis. Identify the constraints on implementation of these improvements.

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20X1 £000 Alpha Group plc 20x3 20X2 Profit and loss data 20915 1 386 299 19 036 1 189 16 929 turnover operating profit depreciation income from investments interest payable 214 95 60 Balance sheet data 636 7213 234 8 083 1 405 660 5 605 201 6 466 1 312 54 62 550 1978 1521 intangible fixed assets tangible fixed assets Investments 484 4 654 148 5 286 1 217 Stocks Trade debtors Cash Other current assets Total current assets Trade creditors Overdraft Short-term loans Other current liabilities Total current liabilities Total assets less current liabilities Creditors: amounts falling due after 97 2 567 1 651 2017 1 381 1 371 3 472 7 178 151 1271 2 943 5 501 2 749 4 554 more than 1 year Provisions for liabilities and charges Minority interests 180 150 5 944 3 000 2 000 944 5 944 159 132 4 606 3 000 158 130 4 027 3 000 Ordinary shares Preference shares, redeemable 20X6 Reserves 1 606 4 606 1027 4 027 Omega Group plc 20X3 20X2 20X1 £000 £000 Profit and loss data turnover operating profit depreciation income from investments interest payable 19 540 620 240 20 720 15 260 340 220 20 660 16 320 220 220 720 Balance sheet data intangible fixed assets tangible fixed assets investments 1 620 220 1 840 3 870 2 660 1360 280 1 640 2 540 1 920 480 1 360 240 2 040 2 040 Stocks Trade debtors Cash Other current assets Total current assets Trade creditors Overdraft Short-term loans Other current liabilities Total current liabilities Total assets less current liabilities Creditors: amounts falling due after 4 000 11330 2 700 60 1 800 8 940 1 620 180 1 200 840 3 840 6 740 5 100 8 060 1 820 5 700 7 380 5 400 3 580 6 080 4 660 more than 1 year Provisions for liabilities and charges Minority interests 260 200 1 520 600 200 720 1 520 360 200 860 600 200 180 1 160 Ordinary shares Preference shares, redeemable 20X6 Reserves 1 160 860