Question
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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