Page 27 - CIMA May 18 - MCS Day 1 Suggested Solution
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SUGGESTED SOLUTIONS
From 2016 to 2017, city bus services contributed an increased proportion of both total revenue
and total operating profit. This could suggest that any future growth or expansion should focus
upon this type of service, which is not yet offered by Menta in Western International region.
Conclusion
Overall, Menta seems to be performing well with reasonable growth in revenue and profits in
2017. However, overall performance ratios are stable compared to 2016 and on the surface at
least, performance appears strong.
The financial position of Menta is again stable compared to 2016 and also appears strong with
good liquidity with only a modest level of debt.
The challenge for Menta in the future is likely to be in finding ways to maintain and improve these
ratios against a background of increasing costs and strong competition in the industry.
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