Answer Happy

Oasis plcIncome statements and statements of financial position of Oasis plcare given below.Income statements (Statement of Profit and Loss):2020 2021AED m AED mSales 16.5 19.8Cost of Sales 9.9 12.0Operating Profit 6.6 7.8Interest Charges 1.0 1.0Profit before Tax 5.6 6.8Taxation 1.0 1.5Profit after Tax 4.6 5.3Dividends Paid 0.4 0.9Statements of financial position:2020 2021AED m AED mNon-Current Assets 73.1 76.0Current AssetsInventory 2.0 1.1Receivables 1.4 2.4Cash 0.5 0.03.9 3.5Current LiabilitiesTrade Payables 1.0 1.2Net Current Assets 2.9 2.2Capital Employed 76 78.2Non-Current LiabilitiesLoan 10.0 10.0CapitalShares 50.0 50.0Reserves 16 18.276 78.2 ROCE Net profit margin Current ratio Quick ratio Inventory turnover Capital gearing Interest cover Dividend cover
a) Calculate the 8 financial ratios for Oasis Plc
b) Comment on the performance of Oasis Plc based on the ratioscalculated in part a.
c) What problems might Oasis have if they operate the businesswith very little cash?
d) Despite its drawbacks why do so many analysts rely on ratioanalysis?