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5 mars] b) Below are the financial ratios for the year 2018 for Okay Limited, a company engaged in the buying and shipment of agricultural

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5 mars] b) Below are the financial ratios for the year 2018 for Okay Limited, a company engaged in the buying and shipment of agricultural products. The ratios for the industry have also been provided. Okay Industry Limited Average Quick ratio 0.52:1 0.84:1 Current ratio 1.20:1 1.80:1 Debtors collection period 46 days 41 days 70 days 50 days Creditors payment period Inventory holding period Dividend yield 58 days 48 days 3.6% Ifi!!!:;!45:! 9% 85% 45% Debt to equity 1.4 times Dividend cover 3.4 times 18% 28% 8% 12.8% Gross profit margin Net profit margin Return on capital employed Net assets tumouer 2896 14% 1.9 times 14.2 times You are required to assess the performance of Okay Itd. in comparison with the industry in respect of profitability, liquidity efficiency and shareholders investment [10 marks)

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