Problem
• Cut Cost Groceries (CCG) has a chain of grocery stores in Queensland. The business has the following comparative balance sheet (in thousands of AUD) at a time when industry average of current ratio is 1.2 and debt ratio of 0.95.
• Calculate the debt and current ratios of CCG.
• Plot a chart for the ratios calculated in 'I' above.
• Write a report about the performance of the business over the three-year period and relative to the industry.
|
|
2018
|
2017
|
2016
|
|
Total current assets
|
4,600
|
4,100
|
4,050
|
|
Non-current assets
|
14,200
|
13,000
|
15,750
|
|
Total current liabilities
|
3,700
|
4,800
|
4,950
|
|
Non-current liabilities
|
9,500
|
7,400
|
10,560
|
• Discuss the limitations of financial ratios.