Current Ratio: 1.78
ROCE: 30.44%
Gearing: 57.2%
Payables days: 18.6 days
Receivable days: 8.3 days
Inventory Turnover: 3.5
Above is corrected. May cause discrepancies.
ROCE has declined significantly with a sharper drop in the last year. This suggests that investments are not being earnt back.
Current ratio grew from 2014 to 2014 but fell again in 2018 which showed that the company has higher debts and/or lower asset value towards the end of the period.
Gearing has risen massively and is now above the higher optimum bound of 50%, raising an alarm on the company overextending their finances.
Payable days have dropped however which will improve supplier relations as suppliers will be happier to be paid quickly.
Receivable days have risen slightly which means that they may experience some cash flow problems in future as their customers are taking longer to pay them for goods.
- Dunelm are not in a terrible financial situation. However, they are running the risk of running out of cash