T able Q12.1 shows inter-firm comparison of construction companies. Calculate the current ratio and the net working capital for each of the companies and comment on them.

Table Q12.1 I nter-firm comparison Particulars ABC CDE EFG HIJ Working capital as % of sales 28.94% 6.30% 27.33% 28.26%

Unadjusted advance (` lakh) 560 174 169 29 Unadjusted advance as % of backlog 6.28% 6.09% 5.05% 2.54%

Gross current assets (` lakh) 2,704 442 539 256 Gross current assets as a % of sales 70.18% 56.81% 79.62% 56.51%

Total liabilities and provisions (` lakh) 1,589 392 354 128 Total liabilities and provisions as a % of sales 41.24% 50.39% 52.29% 28.26%

Current ratio Net working capital