The following ratio have been calculated for Orchard LTD for the ended 30th September 2012:
A) Return on Year End Capital Employed: Profitx Before Interest & Tax X 100% Total Assets – Current Liabilities
= 16 X 100% 258 – 44
= 7.4%

B) Net Assets (Equals to Capital Employed) Turnover: Revenue Capital Employed
(Total Assets – Total Liabilities)
= 250 258 – 44
= 1.2 times

C) Net Profit (Before Tax) Margin: Net Profit
(Before Tax) X 100% Revenue
= 16 X100% 250
= 6.4%

D) Current Ratio: Current Assets Current Liabilities
= 38 44
= 0.9

E) Closing Inventory Holding Period (in Days): Current Inventory X 365 Days Cost of Goods Sold
= 25 X 365 Days 200
= 46 Days

F) Trade Receivables Collection Periods (in Days): Trade Receivables X 365 Days Revenue (Sales)
= 13 X 365 Days 250
= 19 Days

G) Trade Payables Payment Periods (Base on Cost of Sales) (in Days): Trade Payables X 365 Days Cost of Sales
= 23 X 365 Days 200
= 42 Days

H) Gearing (Debt Over Debt Plus Equity): Debt X 100% Debt + Equity
= 100 X 100% 100 + 114
= 46.7%

Introduction
The purpose of this report is to examine the “financial performance and position” of “Orchard LTD” for the last two year (from 2011 to 2012), using the accounting ratios. This report is comments in detail on the following ratios:

• Return on year – end capital employed
• Net Assets Turnover
• Net Profit Margin
• Current Ratio
• Closing Inventory Holding Period (in Days)
• Trade Receivables’ Collection Period (in Days)
• Trade Payables’ Payment Period (in Days)
• Gearing

The result of the data that have been examine show that Orchard LTD have perform better and Orchard LTD have been more stabilized too then the performance in year 2012. Since the completion of $100 million