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Fiven below are the important ratios for a biotech firm Shanthi Bio Pharma Pvt. Ltd. Also given are the industry averages for the biotech industry.

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Fiven below are the important ratios for a biotech firm Shanthi Bio Pharma Pvt. Ltd. Also given are the industry averages for the biotech industry. Compare Shanthi Bic harma ratios with industry average and comment on possible reasons for the variation and what actions can be taken to improve. You must provide comments for each of the ratios individually. Would you consider investing in Shanthi Bio Pharma? Why or why not? Explain succinctly on the basis of the information provided. [8M] Ratio Current Ratio Quick Ratio Cash Conversion Cycle Total-debt-to-total assets Interest Coverage Operating Profit Margin Net Profit Margin Sale-to-total assets Return on assets Poturn on equity Shanthi Bio Pharma 1.98 0.85 90 days 51% 2.55 12.4% 8.7% 1.75 5.63% 13 5% Industry Average 1.60 0.95 70 days 45% 3.20 15.6% 11.2% 1.82 7.6% 16%

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