Year 12 IB Extended Essays 2017

Current and Acid Ratio Analysis

June 2013 – Pre-Expansion

Total Current Liabilities June 2013 – Pre-Expansion

June 2013

$’m

Trade and Other Payables

153.3

Borrowings

0

Provisions

16.1

Other Current Liabilities

2.9

TOTAL

172.3

Current Ratio June 2013 – Pre-Expansion

-

Total Current Assets

June 2013

$’m

Cash and Cash Equivalents

46.5

Trade and other Trade Receivables

10.4

Inventories

170.8

Other Current Assets

13.5

TOTAL

241.2

 Current Ratio = Total Current Assets / Total Current Liabilities



Current Ratio = 241.2 / 172.3



Current Ratio = 1.39:1

Acid Ratio June 2013 – Pre-Expansion

-

Total Current Assets – Inventories

= 241.2 – 170.8

o

= $70.4m

o



Current Ratio = 70.4 / 172.3



Acid Ratio = 0.40:1

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