Milners & Hart

Milners & Hart

Ratio analysis

We started this task before the exam Milners & Hart accountancy

Task

Open the the document '-Milners Accountancy Service Decision Making Task' available on moodle

- Read over the financial data and note down all ratio that can be calculated

Open Ended

what ratios can be calculated for both of the business to determine their performance?

Answer

• Gross Profit Margin

• Operating Profit Margin

• Net Profit Margin

• Acid Test Ratio

• Current Ratio

• ROCE

• Gearing

Task

Work Out the ratios for both of the business

Open Ended

What is the Gross Profit margin for both business?

Open Ended

what is the operating profit margin for both business?

Open Ended

what is the NPM for both business?

Open Ended

What is the Acid Test ratio?

Open Ended

Current Ratio?

Open Ended

ROCE & Gearing?

Task

write a paragraph advising your client

deciding which one is the most financially attractive, supported by ratio analysis.