Dangote Cement PLC Financial Analysis

FINANCIAL RATIO

1. PROFITABILITY RATIOS

Return on capital employed =(Profit before interest and taxation)/(capital employed)×100%

Capital employed= Total assets-current liabilities (₦’million)

=293899/(1823984-410575)×100 =293899/1413409×100=20.79%

2. Return on Equity =(profit after tax and preference dividend)/(capital employed)×100%

=261349/1413409×100%=18.49%

1. ACTIVITY/EFFICIENCY RATIOS

Inventory turnover =(cost of goods sold)/inventory

=181009/67736=2.67 times

2. Inventory days =inventory/(cost of goods sold)×365 days

=67736/181009×365 days =136.58≈137 days

1. LIQUIDITY RATIOS

Current ratio =(current assets)/(current liabilities)

=418990/410575=1.02:1

2. Quick ratio =(current assets-inventories)/(current liabilities)

=(418990-67736)/410575=0.85:1