ACCA FR Syllabus C. Analysing And Interpreting The Financial Statements - When The Financial Position May Not Be Representative - Notes 3 / 4
Seasonal Trading
This is best explained by an example:
Imagine a company who has highly seasonal trading.
Their year end may be immediately after this high trading period
Therefore, they will probably have higher than normal levels of cash and receivables and lower than normal levels of payables
Major Asset Acquisitions Near The Year-End
This has the effect of:
Higher Assets (and maybe loans) but...
No related Income (as it was just before the year end)
This makes ROCE look worse