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K53 MILLEN 3 Bank of India has received two applications from Companies X and Y, for granting following information related to the year 2010. short
K53 MILLEN 3 Bank of India has received two applications from Companies X and Y, for granting following information related to the year 2010. short term loans. On scrutinizing the supporting documents, Loan Officer has found the X Co. Ltd Y Co. Ltd 1:1 1.8:1 0.5:1 1.25 : 1 5 Times 6 Times Debtor Turnover Ratio 6 Times 6 Times 22% 21% Net Profit before tax Ratio 18% 199 Rs. 2,00,000 Rs. 2,00,000 Return on Capital Employed 12% Return on Equity 10% 119 5 Times 6 Times 12% 13% Current Ratio Acid Test Ratio Stock Turnover Ratio Gross Profit Ratio Sales 13 Earning per Share Return on Total Assets Capital Employed Turnover Ratio 15% 189 Fixed Assets Turnover Ratio 16% 19% Total Assets Turnover Ratio 12% 149 You are requested to facilitate the Loan Officer of the bank in granting loan. Also give suggestions, which company has better re-paying capacity and why
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