P/F/29. Report analysing the performance, liquidity and profitability of Ashburton Plc

The above ratios and analysis illustrate Ashburton Plc slipping position in the market place. Turnover has declined and costs have increased, this leads to the organisation not utilising their resources efficiently. The organisations liquidity has remained constant in the past year, however the ratio of current assets to current liabilities is less then one, it also emerged that too much of the assets are being ties up in stocks, this combined with the sharp increase in gearing ratio has made the organisation more at risk from debt.