Exam 6: Ratio Analysis 1: Profitability, Efficiency, and Performance

In the financial statements for the year ended 30 September 2019 Ines Limited reports revenue of £600,000, cost of sales of £270,000, administration expenses of £80,000, finance income of £12,000, finance expense of £24,000 and selling and distribution costs of £76,000. What is Ines Limited's profit before tax % for the financial year ended 30 September 2019?

For the financial year ended 30 November 2019 Mariana Limited reported revenue of £400,000, operating profit of £140,000, finance income of £3,000, finance expense of £10,000 and a taxation charge of £27,000. What is Mariana Limited's profit after tax % for the financial year ended 30 November 2019?

The lower the market's confidence in a company, the higher the P/E ratio.

Which of the following factors will decrease the operating profit % of a retailer? Please select all that apply.

For the year ended 31 October 2019, Jasvinder plc has a profit before tax of £5.7m, an income tax charge of £2.3m, preference dividends of £0.4m and 9m ordinary shares in issue throughout the year. What are Jasvinder plc's earnings per share for the year ended 31 October 2019?

In the financial statements for the year ended 30 June 2019, Javier Limited reported revenue of £900,000, operating profit of £270,000, finance income of £54,000, finance expense of £36,000 and a taxation charge of £63,000. What is Javier Limited's profit before tax % for the financial year ended 30 June 2019?

Imran Limited has sales for the year ended 31 December 2019 of £747,000. The company allowed its customers discounts of £5,000 during the year. £3,000 of these discounts allowed were not taken up by customers who paid the full price for goods supplied. Inventory at 1 January 2019 was £22,500 while inventory at 31 December 2019 was £17,500. Purchases of goods during the year amounted to £425,000. Imran Limited's suppliers allowed bulk discounts of £11,000 to the company during the year. What is Imran Limited's gross profit % for the year ended 31 December 2019?

Marwan Limited has total sales for the year ended 31 October 2019 of £1,050,000 before taking into account sales returns of £50,000. Inventory at 1 November 2018 was £45,000 while inventory at 31 October 2019 was £60,000. Purchases of goods during the year amounted to £635,000. What is Marwan Limited's gross profit % for the year ended 31 October 2019?