RATIO ANALYSIS for the year 2018

Gross profit ratio=gross profit/net sales*100

=4056.36/13287.77*100 Current ratio=current assets/current liabilities

=36525.14/22333.63

=1.63:1

Debtors turnover ratio=net annual credit sales/average debtors

=13287.77/34203.92

=0.38

Working capital turnover ratio=turnover/working capital

=13287.77/14191.51

=0.93

=30.52%

Net profit ratio=net profit/net sales*100

=2646.70/13287.77*100

=19.91%

Operating ratio=operating cost/net sales*100

Operating cost= cost of goods sold+ operating expenses

Cost of goods sold=sales-gross profit

=13287.77-4056.36

=9231.41

=9231.41+1401.43

=10632.84
Operating ratio=10632.84/13287.77*100

=80.01

Return on investment =earnings before interest and tax/capital employed

EBIT=sales-cost of goods sold-operating expenses

=13287.77-9231.41-1401.43

=2654.93

Capital employed=equity=+long term debt

=115.03+43167.89

=43282.92

ROI=2654.93/43282.92

=0.06

Fixed assets turnover ratio=turnover /fixed assets

=13287.77/464.66

=28.59

Capital turnover ratio=turnover/capital employed

=13287.77/43282.92

=0.3

Solvency ratio=total assets/total liabilities

=83692.02/83692.02 =1

Ratio analysis for the year 2017

Current ratio=current assets/current liabilities

=29821.98/19443.68

=1.53:1
Debtors turnover ratio=net annual credit sales/average debtors

=9258.03/25654.78

=0.36 times

Working capital turnover ratio=turnover/working capital

=9258.03/10378.3

=0.89 times

Gross profit ratio=gross profit/net sales*100

=2817.52/9258.03*100

=30.43%

Net profit ratio=net profit/net sales*100

=1836.55/9258.03*100

=19.83%

Operating ratio=operating cost/net sales*100

Operating cost=cost of goods sold+ operating expenses

Cost of goods sold=sales-gross profit

=9258.03-2817.52

=6440.51

=6440.51+931.67

=7372.18/9258.03*100

=79.63%

Return on investment=earnings before interest and tax/capital employed

EBIT=sales- cost of goods sold-operating expenses

=9258.03-6440.51-931.67
1885.85

Capital employed= equity +long term debt

=9600.31+33115.96

=42716.27

=1885.85/42716.27

=0.04

Fixed assets turnover ratio= turnover/fixed assets

=9258.03/361.13

=25.63%

Capital turnover ratio=turnover/capital employed

=9258.03/42716.27

=0.21

RATIO ANALYSIS for the year 2016

• Current ratio=current assets/current liabilities

=43770.93/38102.93

=1.14:1

• Debtors turnover ratio=net annual credit sales/average debtors

=8563.42/18655.07

=0.45

• Working capital turnover ratio=turnover/working capital

=8563.42/5668

=1.03

• Gross profit ratio=gross profit/net sales*100

 =3804.05/8563.42*100

=44.42%

• Net profit ratio=net profit/net sales*100

=1863.27/8563.42*100

=21.75%

• Operating ratio=operating cost/net sales*100

Operating cost= cost of goods sold+ operating expenses

Cost of goods sold=sales-gross profit

=8563.42-3804.05

=4759.37

=4759.37+768.04

=5347.41/8563.42*100

=62.44

• Fixed assets turnover ratio=turnover /fixed assets

=8563.42/855.27

10.01

• Solvency ratio=total assets/total liabilities

=103445.03/103445.03

=1

Ratio analysis for the year 2015

• Current ratio=current assets/current liabilities

=13966.38/9450.03
 =1.47:1

• Working capital turnover ratio=turnover/working capital

=5119.97/4426.35

=1.15 times

• Gross profit ratio=gross profit/net sales*100

=1356.94/5119.97*100

=26.5%

• Net profit ratio=net profit/net sales*100

=897.87/5119.97*100

=17.53%

• Operating ratio=operating cost/net sales*100

Operating cost=cost of goods sold+ operating expenses

Cost of goods sold=sales-gross profit

=5119.97-1356.94

=3763.03

=3763.03+450.73

=4213.76/5119.97*100

=82.30%

• Return on investment=earnings before interest and tax/capital employed

EBIT=sales- cost of goods sold-operating expenses

=5119.97-3763.03-450.73

=906.21

Capital employed= equity +long term debt

 =4799.70+18273.62

=23073.32

=906.21/23073.32

=0.039

Fixed assets turnover ratio= turnover/fixed assets

=5119.97/249.18

=20.54%

Capital turnover ratio=turnover/capital employed

=9258.03/23073.32

=0.40

RATIO ANALYSIS FOR THE YEAR 2014

•Current ratio=current assets/current liabilities

=10294.11/9981.56

=1.03:1

• Working capital turnover ratio=turnover/working capital

=3788.55/312.55

=12.12 times

• Gross profit ratio=gross profit/net sales*100

=1091.16/3788.55*100

=28.80%

• Net profit ratio=net profit/net sales*100

 =719.01/3788.55*100

=18.97%

• Operating ratio=operating cost/net sales*100

Operating cost=cost of goods sold+ operating expenses

Cost of goods sold=sales-gross profit

=3788.55-1091.16

=2697.39

=2697.39+340.81

=3038.2/3788.55*100

=80.19%

• Return on investment=earnings before interest and tax/capital employed

EBIT=sales- cost of goods sold-operating expenses

=3788.55-2697.39-340.81

=750.35

Capital employed= equity +long term debt

=3990.86+10477.76

=14468.62

=750.35/14468.62

=0.05

 Fixed assets turnover ratio= turnover/fixed assets

=3788.55/219.87

=17.23

 Capital turnover ratio=turnover/capital employed

=3788.55/14468.62

=0.26