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b) Calculate and interpret the Debt-to-Assets ratio for 2017 & 2018 for both companies. c) Which company has more risk and how has that changed
b) Calculate and interpret the Debt-to-Assets ratio for 2017 & 2018 for both companies.
c) Which company has more risk and how has that changed over the two years?
d) Calculate and interpret the Return-on-Equity and Return-on-Assets for 2017 & 2018 for both companies.
e) Which company is performing better and how has that changed over the two years?
Question 6 (20 marks) Given the following summarised data on Crystal and Van Vuuren Companies, evaluate the two businesses using ratio analysis Crystal & Co. Van Vuuren Ltd. 2018 2017 2016 $'000 2018 $'000 2017 $'000 2016 $'000 $'000 $'000 Current Assets 1,808 1,683 2,159 1,899 Total Assets 2,964 | 2,806 2,580 | 3,671 3,411 3,100 Current Liabilities 1,365 1,226 2,900 2,230 Total Liabilities 1,889 1,782 1,630 | 3,303 2,900 2,640 Total Equity 1,075 1,024 950 368 511 460 Profit for the Year 172 152 - 44 71 Required: Give answers to the following items: a) Calculate and interpret the Current Ratio for 2017 & 2018 for both companies. [3 marks]Step by Step Solution
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