Calculate asset turnover, Macroeconomics

The following information has been extracted from the recently published accounts of Noddy Plc:

                         Balance sheet as at 31st May

                                                                                                        2009         2008

                                                                                                        £000         £000

Fixed assets                                                                                   1,800        1,400

Current assets

Stock                                                                                               1,200        200

Debtors                                                                                            400          800

Cash                                                                                                100          100

                                                                                                        1,700        1,100

Creditors: amounts falling due within one year

Loans and other borrowing                                                            (200)        (500)

Other creditors                                                                                (300)        (800)

                                                                                                        (500)     (1,300)

Net current assets                                                                         1,200        (200)

Creditors: amounts falling due after one year

10% Debentures                                                                             (1,000)     (600)

                                                                                                        2,000        600

Capital and reserves

Ordinary share capital (50p shares)                                              1,200      500

Share premium                                                                                600          0

Reserves                                                                                          200        100

                                                                                                      2,000       600

Profit and loss accounts

                                                                                                     2009         2008

                                                                                                     £000         £000

Turnover                                                                                       2,000        1,000

Cost of sales                                                                               (1,300)      (700)

Gross profit                                                                                  700           300

Distribution costs                                                                        (260)        ( 90)

Administration expenses                                                            (100)       ( 60)

Operating profit                                                                           340        150

Interest                                                                                       (100)      (60)

Profit before taxation                                                                    240           90

Taxation                                                                                        (50)       (20)

Profit after taxation                                                                      190            70

Ordinary dividends                                                                       (90)        (50)

Retained profit for the year                                                          100           20

Balance brought forward                                                             100           80

Balance carried forward                                                               200         100

Share price                                                                                1.30        1.26

Industry P/E ratio                                                                        22           20 


(a)  Calculate the following ratios for both years:

(i)     Return on capital employed  

(ii)    Asset  turnover  

(iii)   Current ratio 

(iv)   Quick ratio 

(v)    Interest cover 

(vi)   Total gearing

(vii)  Earnings per share (EPS) 

(viii) Earnings yield 

(ix)   Dividend yield 

(x)    Dividend cover

(xi)   P/E ratio 

Posted Date: 2/22/2013 7:42:27 AM | Location : United States

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