Buying shares in Omega Ltd
Your client is considering buying shares in Omega Ltd and is asking for your advice.
Calculate the ratios (showing all your workings) that might be helpful to your client in appraising
the company’s performance (only the ones covered in class), interpret the results
and advise whether to invest in the company. (50 points)
Your main source is the below financial information:
2022 2021
£m £m
Turnover 1,110,678 697,720
Trade payables 257,365 154,710
Non current assets 364,748 102,225
Operating Profit 38,457 30,432
Trade Receivables 159,400 81,846
Gross Profit 280,552 191,982
Interest 150 130
Profit for the year 29,632 21,482
Inventory 62,537 55,845
Non current liabilities 15,155 23,339
Dividends Paid 9,877 5,370
Cash 67,637 35,300
Equity 381,802 97,167
No. of shares 855000000 700000000
Market price 100p 150p