Analyse the accounts and investments statistics of OSU PLC and comment on the financial structure and current position of the company?
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1. Analyse the accounts and investments statistics of OSU PLC and comment on the financial structure and current position of the company? Answer Ratio analysis is an important tool of financial analysis. The absolute accounting figures do not provide any meaningful information for the purposes of analysis of financial performance and financial position of the firm. But when two relevant accounting figures are co-related, this gives some meaningful understanding with regard to financial performance. Profitability ratio: These ratios are designed to highlight the end results of the business activity. They measure the operating efficiency or profit earning capacity of the company. Net operating profit ratio = net operating profit * 100 sales 2000 2001 2002 185/1600*100 = 11.56% 190/1800*100= 10.55% 150/1775*100= 8.45% Operating ratio = cost of goods sold + operating expenses/sale *100 2000 2001 2002 1415/1600*100= 88.43 1610/1800*100= 89.44 1625/1775*100= 91.55 Comments: As per calculations net profit ratio is falling every year...


