Question
Compare the profitability , solvency, liquidity of the two companies in details using the ratio provided above (use bullet points to discuss each performance ration
Compare the profitability, solvency, liquidity of the two companies in details using the ratio provided above (use bullet points to discuss each performance ration "profitability, solvency, liquidity")
For instance:
1. Profitability: ..... (profit margin, asset turnover, return on assets, return on ordinary shareholders’ equity of company A & B)
2. Solvance: .....(Debt to Total Assets and Times Interest Earned of company A & B)
3. liquidity: ......(the current ratio, accounts receivable turnover, and inventory turnover of company A & B)
4. general analysis of which company has best performance and why
Ratios Current Ratio Account Receivable Turnover (in times) Account Receivable Turnover (in days) Inventory Turnover (in times) Inventory Turnover (in days) Profit Margin Asset Turnover Return on Assets Return on Equity Debt to Assets Ratio Times Interest Earned Company A 0.91: 1 24.85 times 14.69 days 6.14 times 59.45 days 2.72% 1.57 4.25% 12.02% 34.89% 3.76 times Company B 0.88: 1 70.85 times 5.15 days 8.08 times 45.17 days 3.45% 2.34 7.86% 19.65% 26.41% 11.33 times
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The detailed answer for the above question is provided below Comparison 1 Profitability Profit margin of company B is more than company A it means com...Get Instant Access to Expert-Tailored Solutions
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