Present suitable ratio which highlight financial performance

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Reference no: EM13907561

The summarized accounts of Ragidem pk are shown   below:

Group consolidated profit and loss accounts (fm)

 

1988

1989

1990

1991

1992

Turnover

220

264

294

314

327

Operating profit

30

32

34

39

43

Add interest

 

 

 

 

 

receivable

 

 

 

 

 

 

31

33

35

40

44

less  Interest payable

7

7

10

12

16

Profit  before tax

24

26

25

28

28

less Taxation

7

7

6

9

9

 

17

19

19

19

19

Extraordinary items

2

 

1

 

1

 

19

19

20

19

20

Dividends

5

6

6

7

8

Retained earnings

14

13

14

12

12

Group consolidated balance sheets (fm)

1988   1989   1990   1991   1992

Ordinary  share capital

(£1 par value)      45            45            45            45            45

74

87

101

113

125

119

132

146

158

170

Reserves

16% unsecured loan

(1990-93)

20

20

15

10

5

10% debenture  (1993)

18

18

18

18

18

Bank loan-variable

 

 

 

 

 

rate (note  1)

 

4

11

29

41

Capital employed

£157

£174

£190

£215

£234

Land,  buildings, plant etc.  (note 2)

87

106

112

112

116

Long-term investments

8

8

8

8

9

Fixed assets

95

114

120

120

125

0  

96

100

109

125

Debtors

59

60

74

91

111

Cash

9

23

16

 

15

Current assets

148

179

190

200

251

Creditors

34

47

49

55

61

Tax payable

9

8

10

11

12

Dividends

5

6

6

7

8

Short-term loans

38

58

55

32

61

Current liabilities

86

119

120

105

142

Net assets employed

£157

£174

£190

£215

£234

Note 1: This loan is renegotiated each year, the current date for repay- ment  is 1996.

Note 2: Capital expenditure has been contracted amounting to £30m for the  year 1993.

1988

1989

1990

1991

1992

380

420

378

370

320

10

10

14

15

18

Average share price Ragidem (pence)

Average P/E ratio for the industry

You  are required  to:

Prepare a report commenting on the main features of the financial performance  of  Ragidem  pk.

(i) Present suitable ratios  which  highlight  the  main features of the financial performance of Ragidem pk.

(ii) Prepare a report commenting on these features.

Reference no: EM13907561

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