Question

Ratios

2017

2018

2019

GP

20%

21%

22%

Net Profit

10%

9%

8%

Current Ratio

2%

2.2%

2.5%

Quick Ratio

1.1

0.9

7

Inventory Turnover

12

10

8

Account Payable Turnover

8

10

12

Collection Period

45 days

52 days

60 days

Fixed Asset Turnover

4

3.5

3

D/E Ratio

1

1.1

1.2

Analyze the above mentioned financial situation of ABC Company and prepare a report based on your finding