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Ratio Of Financial Statement Of Santos Ltd Essay

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Answer 2 :- Calculations of ratios of financial statement of Santos Ltd. Particulars 2014 2013 PROFITABILITY: • Net Profit Margin (23.16) % 14.32 % • Gross Profit % 28.18 % 30.45 % • Return on Assets (6.74)% 4.71% • Earnings per share (95.6)¢ 53.3 ¢ EFFICIENCY: • Account Receivable Turnover 5.66 times 5.56 times • Inventory Turnover 6.72 times 6.80 times SHORT-TERM SOLVENCY: • Current Ratio 1.06 times 1.20 times • Acid Test 0.83 times 0.96 times • Cash Flow from Operations to Liabilities 0.95 times 0.94 times LONG-TERM SOLVENCY: • Debt to Equity 137% 102% • Debt to Total Assets 0.58% 0.50% MARKET BASED: • Price Earnings 8.59 times 27.60 times • Dividend Yield 4.24% 2.05% Question- 3: comment on trends revealed by the ratios calculated in (2) above. Use the headings Profitability, Efficiency, Short term solvency, Long term solvency and market based. Where possible, relate the changes observed in these ratios to events in the business environment in general as discussed in (4) below. Answer- 3: Trends revealed by the ratios calculated in (2). The ratios calculated of The Santos Ltd. for the year 2014 and 2013 show both positive and negative trends. Below is a brief discussion of each trend in detail.  3.1 Profitability: As the name shows, Benefit proportion ascertains a benefit of organization; at the end of the day, it gives the accurate measure of pay which is left after all the expenses and costs. The benefit proportions demonstrated positive present

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