Answer Happy

a) Calculate the 8 financial ratios for OasisPlc (Full accounts listed in the appendix)
 ROCE
 Net profit margin
 Current ratio
 Quick ratio
 Inventory turnover
 Capital gearing
 Interest cover
 Dividend cover
b) Comment on the performance of Oasis Plcbased on the ratios calculated in part a.
c) What problems might Oasis have if theyoperate the business with very little cash?
d) Despite its drawbacks why do so manyanalysts rely on ratio analysis.
Oasis ple Income statements and statements of financial position of Oasis ple are given below. Income statements (Statement of Profit and Loss): 2020 AED m 16.5 9.9 6.6 1.0 5.6 1.0 4.6 0.4 Sales Cost of Sales Operating Profit Interest Charges Profit before Tax Taxation Profit after Tax Dividends Paid Statements of financial position: 2020 AED m Non-Current Assets Current Assets Inventory Receivables Cash Current Liabilities 2.0 1.4 Trade Payables 1.0 Capital 0.5 3.9 Net Current Assets Capital Employed Non-Current Liabilities Loan Shares Reserves 73.1 2.9 76 10.0 Appendix 1. 50.0 16 76 2021 AED m 19.8 12.0 7.8 1.0 6.8 1.5 5.3 0.9 2021 AED m 1.1 2.4 0.0 3.5 1.2 76.0 2.2 78.2 10.0 50.0 18.2 78.2