Accounting for Managers: Interpreting accounting information for decision-making

386 ACCOUNTING FOR MANAGERS

Table A1.2 Balance Sheet as at 31 December

In £mill 2001 2000

Fixed assets

Tangible assets 266.7 265.3

Current assets

Stock 5.3 5.8

Trade debtors 15.7 20.9

Other debtors and prepayments 2.4 2.0

Bank 4.9 6.3

28.3 35.0

Creditors falling due within one year − 66. 8 − 27. 6

Net current assets (-liabilities) − 38 .57.4

Total assets less current liabilities 228.2 272.7

Creditors falling due after one year − 96. 7 − 146. 1

Net assets 131.5 126.6

Capital and reserves

Share capital 81.9 82.8

Profit and Loss account 49.6 43.8

Shareholders’ funds 131.5 126.6

žReturn on shareholders’ investment (ROI).
žReturn on capital employed (ROCE).
žOperating profit/sales.
žSales growth.
žGearing.
žAsset turnover.

Draw some conclusions from the change in the ratios over the two years.

7.2 Jupiter Services has produced some financial ratios for the past two years.
Use the ratios that have already been calculated to draw some conclusions about
Jupiter’s:

žprofitability;
žliquidity;
žgearing;
žefficiency.