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A financial analyst calculated the ratios for two companies and compared them with those of the peers as below; Ratio Open Group Super Group Other
A financial analyst calculated the ratios for two companies and compared them with those of the peers as below;
Ratio Open Group Super Group Other peers
2022 2021 2022 2021 2022
Net non-current
operating assets
turnover 1.3 1.4 2.4 2.5 2.1
Accounts receivables
Turnover 51.4 79.7 140.7 132.0 69.6
Inventories turnover 1.7 1.7 2.7 2.7 9.2
Accounts payables
Turnover 2.9 3.2 4.2 4.7 7.4
Required
Discuss how the financial analyst can use this information to ensure proper management of assets under the control of the two companies. (6 Marks)
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