Mothercare has been reorganising since 2015 and spending a net 77,000 pounds on it. However, this has not resulted in improved cash generation. On the contrary, the outflows in 2018 and 2019 are the worst to occur over the five years. the performance ratios could hardly be worse.Those for accounts receivable and payable indicate that, in 2019, the company had been concentrating on these to raise cash. The company has ploughed all the cash it could create, and borrow, back into the firm. No dividends were paid. Now that goodwill has been eliminated the ratios involving return on operating assets are affected, the 2019 ones are not really relevant.
That the company is now in administration is not surprising.