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Hi Please Help me to answer this question. You are a financial analyst researching two major companies for a client, who wants to invest in

Hi Please Help me to answer this question.

You are a financial analyst researching two major companies for a client, who wants to invest in a safe, profitable company. Using the DuPont model and different ratios from the information below, which Company would you recommend to your client? Why? What would be other factors that you would consider?

$'000 Year 2022 Company Year 2021 Company

A B A B

Sales/Revenue 1000 2000 900 1800

Net Operating Profit after Tax 300 450 240 400

Current Assets excluding inventory 2000 3000 1950 2850

Inventory 120 250 80 200

Total Assets 4500 5500 4100 5200

Current Liabilities 1950 2450 1750 2250

Total Liabilities 3000 4000 2600 3700

Total Shareholders Equity 1500 1500 1500 1500

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