"Table of Contents1.0Introduction ................................................................................................................................ 12.0Overview of Cargills (Ceylon) PLC .......................................................................................... 23.0Theories & concepts .................................................................................................................. 34.0Cost behaviours of Cargills ........................................................................................................ 35.0 Cargills PLC Financial Performance ........................................................................................ 45.1Operational Profit Margin Ratio and Net Profit Margin Ratio .............................................. 45.2Gross Profit Margin Ratio ...................................................................................................... 65.3Total Asset Turnover and Return on Capital Employed ........................................................ 75.4Gearing Ratio ......................................................................................................................... 85.5Current Ratio .......................................................................................................................... 85.6Payable days........................................................................................................................... 85.7Receivable Days..................................................................................................................... 96.0 Recommendations ..................................................................................................................... 97.0 Conclusion .............................................................................................................................. 10References ..................................................................................................................................... 11Page | i 1.0 IntroductionThe purpose of this report is to identify the different cost categories and understand differentratio method. Initially, the author provides brief summary about Cargills PLC, in this section theauthor discuss about the company history and their products and services. Secondly this reportdiscuss about the theories and concepts of cost and ratio. Moving on, in the next the authoranalysis and discuss the Cargills PLC financial performance by using different types of ratio andauthor uses firm balance sheet and income statements to analysis the ratio. Then author, makesome recommendations to the firm to increase their performance in the competitive marketplace.Finally, the author provides a conclusion based on the analysis.Page | 1 2.0 Overview of Cargills (Ceylon) PLCThe Cargills (Ceylon) PLC has long history in Sri Lankan FMCG industry. In 1844, the TheCargills (Ceylon) PLC was founded with strong business ethics and values. Cargills PLC hasleads by ethical and reliable leadership (Cargills PLC, 2016a). Further, the company maintainstheir dominance in the FMCG industry and recently they have entered the banking industry(Cargills PLC, 2016b). In Sri Lanka, the Cargills PLC was the first company foundedsupermarket chain, which founded in 1983. Furthermore, the firm continually makes investmenton Cargills food in order to become biggest and leading retailer in Sri Lanka (Cargills PLC,2015). Moreover, Cargills PLC practises innovation and safety in their products such as CargillsKist, Supermo and Magic. In addition, the firm obtained more customers for their servicethrough their quality of products and services (Cargills PLC, 2016b). Additionally, Cargills PLCobtained franchise certificate for KFC Sri Lanka, which is one of the biggest restaurants inworld. Cargills supply their products and service to consumers through their marketing andsupply chain. Moreover, the firm not only supplies their products or services but also suppliesglobally well-known food and other products and service as well (Cargills PLC, 2016b). Inaddition, the company agricultural business has acquired international identification forconnecting industrialists and farmers to the marketplace throughout maintainable andcomprehensive value creation procedure (Cargills PLC, 2013). The Sri Lankan FMCG giant has go into soft alcohol industry by accomplishing the purchase ofMcCallum Brewery in 2011. Moreover, in 2011, Central Bank of Sri Lanka offered bankinglicence to the Cargills PLC (Colombo Stock Exchange [CSE], 2016).A vision statement ofCargills PLC is “To be a global corporate role model in community – friendly nationaldevelopment”. Mission statements of Cargills PLC states “Serve the rural community, ourcustomers and all other stakeholders, through our core business -food with love and other relatedbusinesses, based on the three main principles of reducing the cost of living, enhancing youthskills and bridging regional disparity by enhancing local and global markets (Cargills PLC,2015).Page | 2 "