2020 Analyses ABC XYZ Profitability ratios Gross profit margin 17.51% 17.5% Operating profit margin 3.24% 4.3% Net profit margin 2.96% 3.96% Return on assets 2.97% 1.78% Efficiency ratios Inventory turnover 5.83 4.06 Average inventory 62.6 days 90.0 days turnover Liquidity ratios Current ratio 1.1:1 1.2:1 Acid -test ratio 0.82:1 0.91:1 Investment Return on investment 8.4% Gearing ratios Equity ratio 27% 25.91% Interest cover ratio 5.4:1 4.2:1 1. Analyse and discuss the differences observed between the two companies namely ABC and XYZ, based on the table above. 2. Perform a direct analysis by looking at aspects like turnover, gross profit, net profit etc., between the companies. 3. Evaluate the two companies and discuss the differences between the results obtained in (1) and (2) 6.5