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Financial Metrics Year 1 Year 2 Year 3 Liquidity Ratios - Current Ratio 2.6 2.8 3.0 - Quick Ratio 1.9 2.1 2.4 Profitability Ratios -
Financial Metrics Year 1 Year 2 Year 3 Liquidity Ratios - Current Ratio 2.6 2.8 3.0 - Quick Ratio 1.9 2.1 2.4 Profitability Ratios - Net Profit Margin 15% 18% 20% - Return on Equity (ROE) 22% 25% 28% Efficiency Ratios - Asset Turnover 2 times 2.2 times 2.5 times - Accounts Receivable Turnover 10 times 12 times 14 times Financial Statement Analysis - Horizontal Analysis - Vertical Analysis Requirements:
- Compute liquidity ratios (current ratio, quick ratio) for Company YZ for three consecutive years.
- Determine profitability ratios (net profit margin, return on equity) for the same period.
- Analyze efficiency ratios (asset turnover, accounts receivable turnover) for each year.
- Perform horizontal analysis of financial statements.
- Conduct vertical analysis of financial statements.
- Ensure all ratios are correctly calculated.
- Provide interpretations for the trends observed.
- Present all data accurately.
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