Report analysing the performance, liquidity and profitability of Ashburton Plc

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Report analysing the performance, liquidity and profitability of Ashburton Plc

Written By Jane Mac

Seminar Tutor: Jane Hughes

Word Count: 1422

Executive Summary

This report analyses the performance of Ashburton Plc, using profitability, liquidity and other ratios.

Between 2000 and 2001, Ashburton Plc achieved:

* a 21.7% decrease in Return on Capital Employed

* a decrease in Annual Turnover ratio from 3.8 to 2.7

* no/small change in the current and acid test ratio

* the period of time for debtors to make the payments increased, but was still within the thirty day credit period given

* the period of time taken to pay back creditors increased from 17 days to 20 days

* a decrease in both gross and net profit ratios

* an increase in gearing ratio

Contents Page

1.0 Introduction Pg 4

1.1 Objectives

1.2 Methodology

1.3 Terms of Reference

2.0 Ashburton Plc Pgs 4 - 8

2.1 Performance

2.1.1 Turnover

2.1.2 Annual Turnover Ratio

2.2 Profitability ratios

2.2.1 Gross Profit percentage

2.2.2 Net Profit percentage

2.3 Use of Assets ratios