Page 21 - MCS August Day 1 Suggested Solutions
P. 21

SUGGESTED SOLUTIONS


                  CHAPTER SIX

                  Exercise 1 – Analysis of performance and position

                  Montel ‐ Ratio analysis



                  Financial Statements (pages 22 to 23)
                                                                 2018                                 2017

                  Revenue growth        (32,265‐32,516) /        ‐0.8%
                                            32,516

                  Operating profit       (3,276‐2,981) /        +9.9%
                  growth                     2,981

                  Pre‐tax profit growth   (2,816‐2,541) /      +10.8%
                                             2,541

                  Post‐tax profit growth   (2,348‐2,115) /     +11.0%
                                             2,115

                  Gross profit margin    16,381 / 32,265       50.78%          16,559 / 32,516      50.92%

                  Operating profit       3,276 / 32,265        10.15%          2,981 / 32,516        9.17%
                  margin

                  Pre‐tax margin         2,816 / 32,265          8.7%          2,541 / 32,516         7,8%

                  Post‐tax margin        2,348 / 32,265         7.27%          2,115 / 32,516        6.50%

                  Effective tax rate    468 / (3,276‐460)      16.62%         426 / (2,981‐440)     16.76%

                  Effective interest rate    460 / 4,600        10.0%            440 / 4,400         10.0%

                  Non‐current asset      32,265 / 88,036          0.36         32,516 / 87,227        0.37
                  utilisation

                  Return on capital         3,276 /             3.40%             2,981 /            3.11%
                  employed               (92,034+4,600)                        (91,440+4,400)

                  Return on equity       2,348 / 92,034         2.55%          2,115 / 91,440        2.31%

                  Return on equity –     2,348 / 92,034         2.55%          2,115 / 91,440        2.31%
                  parent shareholders

                  Current ratio          10,194 / 1,596        6.38 : 1        10,083 / 1,470       6.86 : 1

                  Quick ratio            (10,194‐6,553) /      2.28 : 1        (10,083–6,325) /     2,56 : 1
                                             1,596                                 1,470

                  Inventory days        (6,553 / 15,884) ×    150 days        (6,325 / 15,857) ×   145 days
                                              365                                   365

                  Receivables days      (2,785 / 32,265) ×    31.5 days       (2,884 / 32,516) ×   32.4 days
                                              365                                   365

                  KAPLAN PUBLISHING                                                                    65
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