ratio analysis
As a PLC, Cadbury were required by law to publish annual accounts and to hold an Annual General Meeting, where the accounts were discussed and approved and shareholders could vote on important issues.
One way of assessing a company's performance is through ratio analysis calculations. These include:
- Gross profit
- Net profit
- Gross profit ratio
- Net profit ratio
- Current ratio
- Acid-test ratio
Your task
The next six screens give more detail about each of these calculations. You will be asked to use the calculations to assess Cadbury's real performance in 2005 and 2006.
Download this spreadsheet and save it to your computer. You’ll need to enter all your calculations here. 
You’ll need to refer to the Financial information sheet, which includes the Cadbury balance sheet and profit and loss account for 2005 and 2006.(The gross and net profit figures have been deleted from the profit and loss account as you will be working these out for yourself.)
You’ll also need a calculator.
