This report presents a financial analysis of Elite PLC, focusing on the computation and interpretation of various financial ratios for the years 2018 and 2019. The analysis covers gross profit ratio, operating profit ratio, return on capital employed (ROCE), current ratio, acid test ratio, trade receivables turnover, trade payables turnover, and non-current asset turnover. The report calculates these ratios using provided financial data and offers insights into Elite PLC's profitability, liquidity, and efficiency. The findings indicate areas of improvement, such as the company's short-term liquidity position and working capital management. Based on the analysis, recommendations are provided to the senior management, including focusing on liquidity, improving working capital management by shortening the operating cycle and improving payment terms with suppliers. The report references several academic sources to support its analysis.
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