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
Required:
(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