Profitability Ratios 2013 2014 InterpretationReturn on Equity 18.5% 7155

30200+356002

×100%

= 21.7%

During the 2013-2014 period. the business' ROE increased from 18.5% to 21.7%. this means the owner is getting more return from his capital

Net profit margin 6.7% 715572970

×100%

= 9.8%

During the 2013- 14 period the business' NPM has increased from 6.7% to 9.8%. this means the business is getting better at controlling its expenses.

Gross Profit margin 34% 2336072970

×100%

=32%

During the 2013-14 period the business' GPM has decreased from 34% to 32%. this means that the business is getting worse at controlling its COGS expenses.

Selling Exp. Ratio 16.5 992072970

×100%

= 13.5%

During the 2013-14 period the business' SER has decreased from 16.5% to 13.5%. this means that the business is getting better at controlling its SER expenses.

General Exp. Ratio 8.8% 453572970

×100%

=6.2%

During the 2013-14 period the business' GER has decreased from 8.8% to 6.2% . this means that the business is getting better at controlling its GER expenses

Financial Exp. Ratio 2% 175072970

×100%

=2.4%

During the 2013-14 period the business' FER has increased from 2% to 2.4% . this means that the business is getting worse at controlling its FER expenses.

Stability Ratios 2013 2014 interpretationWorking capital 1.03:1 8875

10420¿0.85 :1

During the 2013-14 period the business' WC from 1.03:1 to 0.85:1. this means that the business ability to pad its current liability is getting worse. in addition it does not satisfy the minimum requirement to 2:1

total debt 80.2% 5842094020

=62.1%

During the 2013-14 period the business' TDR has decreased from 80.2% to 62.1%. this means that the business total debt has decrease. in addition the business still exceeds the maximum limit of 50%

stock turnover 29.2days 365÷49610

3755+34402

=26.5days

During the 2013-14 period the business' STR has decreased from 29.2days to 26.5 days. this means that the business is getting faster at selling their good

debtor turnover 24.8 days

365÷36485

5490+47602

51.3days

During the 2013-14 period the business' DTR increased from 24.8days to 51.3 days. this means that the business is getting slower at collecting its debt

interest coverage 2.5 times 1750+71551750¿5.1

During the 2013-14 period the business' ICR increased from 2.5 times to 5.1 times. this means that the business ability to pay its interest has become better. in addition it satisfy the minimum requirement of 5 times