Orange plc Financial Statement Coursework Example | Topics and Well Written Essays - 2000 words

Orange plc Financial contestation - Coursework ExampleThe come withs return on equity balance was 25% in 2014 and 8.74% in 2015. The return on equity symmetry measures the confederacys performance in earning return to its shareholders. patronage the company having a commencement ratio in 2015, it had significant high performance in 2014 by having a fair return to its shareholders. The return on assets was 3.21% in 2015 and 10.48% in 2014. The return on assets ratio measures the companys performance in generating sufficient profits from its total assets. The company had a low ratio in 2015 desspite the high ratio it had in 2014. This showed a tremendous decline in the companys performance. The maintenance of a 100% mark up between the two years was a desirable aspect of the company performance. There was a decline in the return on hood employed between the two years using the the two different methods of computing. This trend is undesirable and should be changed since it shows a decline in the companys performance.The companys current ratio was 2.05 in both 2014 and 2015. This ratio measures the companys liquidity by determining the extent in which the companys current assets can offset its current liabilities. The company maintains a current ratio that is preceding(prenominal) in both the two financial years implying that the companys liquidity position is at a fair place since it can easily offset its current obligations with its current assets. The maintenance of this ratio is thus a positive indicator of the companys liquidity position. The companys quickly ratio was 1.27% in 2014 and 1.31% in 2015. The quick ratio measures the companys liquidity in a similar way like how the current ratio does but it does excludes the inventory from the current assets. There is excommunication of inventory from the current assets since it is not easily converted into cash like the other current assets. This elbow room basing the companys liquidity on inventory is