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(a) The following information of some key ratios is given for Ali Ltd and Baba Ltd for 2015. Ratios Ali Ltd Baba Ltd Profitability Ratios:

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(a) The following information of some key ratios is given for Ali Ltd and Baba Ltd for 2015. Ratios Ali Ltd Baba Ltd Profitability Ratios: Return on equity (ROE) (%) 18% 15% Net profit (NP) (%) 11% 7% Liquidity Ratios: Current Ratio (times) 1.8 1.7 Quick Ratio (times) 0.5 1.2 Solvency Ratio: Debt to Equity Ratio 80% 65% Requirement: By interpreting above mentioned ratios, analyze the financial performance and position of both companies

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