3. MBA Investments Ltd (MBAIL) is a large merchandising firm based in Dar es Salaam and having retail branches throughout East Africa. Your client, Mr Peter Magambo has asked you to evaluate MBAIL's performance with a view to assessing its future prospects so that he decides whether to invest in the company or not. Assume you have decided to assess MBAIL through its accounting ratios and to give you a basis for comparison you decide to assess the 2019 results against those for 2018 and a summary of the ratios is given below. MBA Investments Ltd (MBAIL) Accounting Ratios for the year ended 31 December 2019 Profitability Ratios 2017 2018 Return on net assets (%) 14.9 19.0 Return on equity (%) 13.1 19.1 Gross profit margin (%) 43.8 42.9 Net profit margin (%) 13.8 16.1 Activity Ratios Net asset turnover (times) 1.08 1.18 Stock holding period (days) 78.8 62.0 Debtor collection period (days) 64.0 50.6 Creditor payment period (days) 83.9 64.4 Liquidity Ratios Current 1.0:1 1.78:1 Quick assets 0.76: 11.39:1 No credit period (days) (54.0) 13.6 Gearing Ratios Debt to equity 1.1:1 0.73:1 Times interest covered (times) 2.9 4.5 Investors' Ratios Earnings per share (Tshs) 0.23 0.39 Price/earnings 15.2 13.1 Dividend yield (%) 2.8 2.6 Dividend cover 3.1 3.9 Required: Comment on the performance of MBAIL and assess its future prospects