Calculate ratios from ASOS 2020 and 2021 annual reports and comment on the comparative performance

QUESTION

This assignment requires each student to work on the published financial statements of ASOS PLC for two years from 2020 to 2021.

 

You are required:

Write a brief report on the performance of ASOS over the financial periods 2020 to 2021.You should use the financial statements provided below to calculate the required accounting ratios shown below and use any other information relevant to ASOS PLC for your comments. Information can be accessed from the annual report and accounts and any other source of evidence that you believe helps to explain the company’s performance and position. (30Marks)

 

Calculate ratios from ASOS 2020 and 2021 annual reports and comment on the comparative performance

ASOS year end 31 August 2020-21
	2021	2020
Income statement	£m	£m
Sales revenue	3,911	3,264
Cost of sales	2,134	1,716
Gross profit	1,776	1,547
Operating profit (use for PBIT)	190	151
Interest paid	13	10
	2021	2020
Balance sheet	£m	£m
Non-current assets	1,325	970
Current assets	1,560	1,020
Inventories	807	532
Trade and other receivables	58	60
Current assets less inventories	753	487
Current liabilities	998	818
Trade and other payables	956	770
Non-current liabilities	1,034	810
Total equity	1,034	810
Capital employed	2,068	1,621