The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows: 2019 2020 £ million £ million Equity 2,460.8 1,732.8 Non-current liabilities (Loans) 640.0 800.0 Current liabilities 654.4 1,020.5 Non-current assets 2,804.8 2,367.2 Current assets 950.4 962.4 Revenue 1,601.6 1,509.6 Total expenses 1,444.0 1,492.8 Required: (a) Calculate the following financial ratios for the two years: 2019 and 2020: (i) Current ratio (ii) Capital gearing ratio (iii) Profit margin (b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020. (c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.
The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows:
2019 2020
£ million £ million
Equity 2,460.8 1,732.8
Non-current liabilities (Loans) 640.0 800.0
Current liabilities 654.4 1,020.5
Non-current assets 2,804.8 2,367.2
Current assets 950.4 962.4
Revenue 1,601.6 1,509.6
Total expenses 1,444.0 1,492.8
Required:
(a) Calculate the following financial ratios for the two years: 2019 and 2020:
(i)
(ii) Capital gearing ratio
(iii) Profit margin
(b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020.
(c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.
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