BU7753 Finance for Managers

Cordoba

Basis 2011 2012

£000 £000
Profitability
Gross profit x100 1920 x 100 = 38.87% 2300 x100 = 33.58%
Sales 4940 6850
Net profit x 100 460 x100 = 9.31% 450 x100 = 6.57%
Sales 4940 6850
Expenses x 100 1460 x 100 = 29.55% 1850 x100 = 27.01%
Sales 4940 6850
ROCE 460 x 100 = 12.07% 450 x100 = 9.45%
Net profit x 100 3810 4760
Share capital + reserves
+ long term liabilities
Mark up 1920 x 100 = 63.58% 2300 x 100 = 50.51%
gross profit x100 3020 4550
Cost of goods
Liquidity
Current assets: current 1770:560 2390 : 840
liabilities 3.16: 1 2.85 :1
Acid test 1770- 930 : 560 2390 – 1150 : 840
current assets – stock : 840 : 560 1240: 840
current liabilities 1.5 :1 1.48: 1
Efficiency
Stock turn ( 630 + 930) ÷2 = 780 (930 +1150 ) ÷2 = 1040
Aver. stock (or closing stock) x 365 780 x 365 = 94 days 1040 x 365 = 83 days
Cost of sales
3020 4550

94 days ( or 112 days) 83 days ( or 92 days)

Debtor days 820 x 365 = 61days 1230x 365 = 66 days
Debtors x 365 4940 6850
Sales
Creditor days 560 x 365 = 62 days 840 x 365 = 64 days
Creditors x 365 3320 4770
Purchases
Fixed asset turnover 2600 x 100 = 52.63% 3210 x 100 = 46.86%
Fixed assets x 100 4940 6850
Sales