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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
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 46 days 41 days Debtors collection period Creditors peyment period 70 days 50 days 58 days 48 days Inventory holding period Dividend yield 3.6% 9 % Debt to equity 85% 45% Dividend cover 1.4 times 3.4 times 18% 28% Gross profit margin Net profit margin Return on capital employed 8% 12.8% 28% 14% Net assets turnover 4.2 times 1.9 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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