D2: Mr. Han`s Company
Evaluate the financial performance and position of a business using
ratio analysis.
For this assignment I am going to evaluate the financial performance
and position of a business using ratio analysis. The company I have
chosen for this assignment is Mr. Han`s Company.
Ending Ending Ending Industry
March 2011 March 2012 March Average
2013
Gross Profit 44% 45% 43% 37%
Percentage
Net Profit Percentage 28% 27% 32% 30%
Return on Capital 41% 45% 22% 39%
Employed
Current Ratio 4.8:1 4.9:1 2:1 4.5:1
Acid Test Ratio 1.1:1 O,89:1 1.4:1 1:1
Debtors Payment 0,89 days 0,88 days 1 day 0,9 days
Period
Creditors Payment 5,7 days 13 days 17 days 12 days
Period
Average Rate of Stock 44 days 56 days 77 days 62 days
Turnover
The gross profit has slightly decreased in 2013 from the previous
years with 1% from 2011 and 2% from 2012, this could mean that the
business had a lack of sales or maybe their product was not likes by
Evaluate the financial performance and position of a business using
ratio analysis.
For this assignment I am going to evaluate the financial performance
and position of a business using ratio analysis. The company I have
chosen for this assignment is Mr. Han`s Company.
Ending Ending Ending Industry
March 2011 March 2012 March Average
2013
Gross Profit 44% 45% 43% 37%
Percentage
Net Profit Percentage 28% 27% 32% 30%
Return on Capital 41% 45% 22% 39%
Employed
Current Ratio 4.8:1 4.9:1 2:1 4.5:1
Acid Test Ratio 1.1:1 O,89:1 1.4:1 1:1
Debtors Payment 0,89 days 0,88 days 1 day 0,9 days
Period
Creditors Payment 5,7 days 13 days 17 days 12 days
Period
Average Rate of Stock 44 days 56 days 77 days 62 days
Turnover
The gross profit has slightly decreased in 2013 from the previous
years with 1% from 2011 and 2% from 2012, this could mean that the
business had a lack of sales or maybe their product was not likes by
