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(a) Using the information provided in the table above, compare the performance of the two companies during the year ended 30 June 2019. (b) Based

(a)

Using the information provided in the table above, compare the performance of the two companies during the year ended 30 June 2019.

(b)

Based on the information in the table, explain what drives the difference in return on equity (ROE) between the two companies?

The following information about two retail firms is for the year ended June 30 2019 Joko Ltd Hewitt Ltd ROE 18.00% 10.00% 1.46 0.65 Debt/Equity Days in inventory Payables turnover 31.2 days 14.80 days 10 15 Interest coverage 2.18 2.71 Current ratio 1.74 1.15 8.00% 3.00% 7.00% 2.60% ROA Profit margin Days in accounts receivable Gross margin Asset/equity 20.75 days 10.33 days 21.89% 22.68% 2.25 1.43 Quick ratio 1.2 0.75

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