The following five-year summary relates to Wandafood Products plc and is based on financial statements prepared under the historical cost convention:

Liquidity ratios

Per share

Net operating assets include tangible fixed assets, stock, debtors and creditors. They exclude borrowings, taxation and dividends.

Required:

Prepare a report on the company, clearly interpreting and evaluating the informationgiven.

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20X6 Financial ratios 20X9 20X8 20X7 20X5 Profitability Trading profit 7.0 Margin 7.8 7.5 7.2 7.3 Sales Trading profit Return on assets -% Net finance charge 163 17.6 16.2 18.2 18.3 Interest and dividend cover Trading profit 4.8 3.6 Interest cover times 2.9 5.1 6.5 Net finance charge Earnings per ordinary share Dividend cover times 2.7 2.6 2.1 2.5 3.1 Dividend per ordinary share Debt-equity ratios Net borrowings 65.9 61.3 48.3 10.8 36.5 Shareholders' Net borrowings %- Shareholders' funds plus 59.3 55.5 44.0 10.1 33.9 minority interests