From the viewpoint of a potential shareholder who would be interested in the returns on their investment, ratios such as Return on Equity (ROE), Dividend per Share (DPS), and Earnings per Share (EPS) are crucial.

• The ROE has improved from 15.93% in 2019 to 19.4% in 2020, indicating better utilization of shareholders’ funds.
• EPS increased from GH¢0.30 to GH¢0.43, which could boost shareholder confidence as it suggests that the company is generating higher earnings per share.

From the viewpoint of a potential lender, the company’s Interest Cover ratio and Debt/Equity ratio would be key indicators of its ability to meet debt obligations:

• Interest Cover has increased from 10.5 times in 2019 to 12.9 times in 2020, suggesting that the company is generating sufficient profits to cover its interest payments comfortably.
• The Debt/Equity ratio decreased from 26.55% to 22.39%, indicating a decrease in financial risk as the company relies less on debt relative to equity.

e) Weaknesses in Ratios:

1. Historical Nature:
   Ratios are based on historical financial information, and therefore may not reflect future performance.
2. Comparability Issues:
   Different companies use different accounting policies, which can affect the comparability of ratios, such as using different depreciation methods.
3. Industry Differences:
   Ratios may vary significantly across different industries, making it difficult to benchmark a company’s performance against others outside of its industry.