Ratio Analysis:

Liquidity ratios:

Current Current Cash

Company Year Inventory
Assets Liabilities Equivalent

2021 1,950 3,800 640 80

Company A
2022 1,690 3,120 490 120

2021 17,406 13,372 7,262 2,788

Company B
2022 18,306 16,472 9,816 1,424

Solvency Ratio

Share Holder Interest

Company Year Total Debt EBIT
Equity Expense
2021 1,755.00 2,045.00 655.00 95.00
Company A
2022 1,445.00 1,675.00 464.00 69.00

2021 13,372.00 7,326.00 3,026.00 570.00

Company B
2022 16,472.00 8,994.00 3,206.00 570.00

Profitability Ratio

Company Year Operating IncoNet Income Sales Average Total

2021 920 370 11200 117.51
Company A
2022 669 345 9750 240.047
2021 372.6 234.7 31320.8 -180.53
Company B
2022 676.3 433 33860.8 -866
 Efficiency Ratio

Average
Average Average Total
Company Year Accounts Net Sales
Inventory Assets
Receivable

2021 1,230 640 11,200 3,800

Company A
2022 1,080 490 9,750 3,120
2021 7,378 7,262 8,340 26,398
Company B
2022 7,066 9,816 10,020 31,166
 Cash Ratio

0.02

0.04

0.21

0.09

Debt to Interest
Equity Coverage
0.86 6.89

0.86 6.72

1.83 5.31

1.83 5.62

Operating Margin
Net Ratio
Margin Ratio
0.0821428571 0.0330357142857
0.0686153846 0.0353846153846
0.0118962479 0.0074934229011
0.0199729481 0.012787648254
 Average
Equity
Shareholders’ Asset Turnover
Turnover
Equity

2,077 2.95 5.39

2,085 3.13 4.68
6,264 0.32 1.33
6,389 0.32 1.57
 Annual Cash Flow PV Discount Factor
Year Present Value (£'000)
(£'000) 10%
0 -7,500 1.000 -7,500
1 1,000 0.909 909.0
2 2,200 0.826 1,817.2
3 2,300 0.751 1,727.3
4 2,500 0.683 1,707.5
5 2,400 0.621 1,490.4
6 1,300 0.564 733.2
7 1,100 0.513 564.3
8 1,000 0.467 467.0
8 900 0.467 420.3
Net Profit Value (NPV) 2,336.2

Annual Cash Flow Cumulative Cash

Year
(£'000) flow (£'000)
1 1,000 1,000
2 2,200 3,200
3 2,300 5,500
4 2,500 8,000
5 2,400 10,400
6 1,300 11,700
7 1,100 12,800
8 1,000 13,800
Scrap Value 900 14,700
Total Estimated Cash Flow 81,100