Mann Ltd Coursework Example | Topics and Well Written Essays - 250 words

Mann Ltd - Coursework Example This is supported by the above given ratios. Return on capital employed has dropped to 19.8% in 2010 as compared to 31% in 2009. This downward shift is attributed to a sharp descent in net profits. The rise in assets has failed to show an increase in income of the company. Sales of the company has shown an increase but factors associated with sales like operating profit margin and gross profit margin has shown an inverse trend. Operating profit margin has declined from 19.8% in 2010 to 13.9% in 2010. Adding to the misery is declining gross profit margins, a substantial decline from 42% in 2009 to 37.5% in 2010. Sales figure has shown an increase but the company has failed to maintain gross and operating profit margin due to increasing costs. Company’s liquidity position has shown a slight decline from 2009. Current asset ratio has dropped from 4.8 times in 2009 to 4.6 times in 2010. The company’s liquidity in terms of current asset ratio is appropriate and should do wel l in years to come. However, acid tests shows a sharp decline. It has dropped to 3.6 in 2010 in comparison to 4.2 in the previous year. This is due to a disproportionate increase in current asset and liabilities. Furthermore, inventory holds a major share in the current asset in 2010.Trade settlement period is of particular interest to a manager in Mann Ltd. The time period has deteriorated in the current year. High volumes of sales have been on credit in the recent year, which is evident figures that have grown from 306 in 2009 to 468 in 2010.