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Marsfield Ltd and Ryde Ltd have provided the following information, which relates to the year ended 30 June 2021. Marsfield Ltd Ryde Ltd Industry Average

Marsfield Ltd and Ryde Ltd have provided the following information, which relates to the year ended 30 June 2021.

Marsfield Ltd

Ryde Ltd

Industry Average

Return on assets

12.31%

18.10%

15%

Return on shareholders equity

11.52%

17.22%

14.85%

Current ratio

1.91:1

1.03:1

1.65:1

Quick ratio

1.09:1

0.77:1

0.95:1

Inventory turnover (days)

55 days

65 days

60 days

Receivable turnover (days)

48 days

78 days

47 days

Debt to asset ratio

70.2%

101.4%

75.3%

Times interest earned ratio

5.9 times

3.1 times

5.3 times

Required:

Using the information above evaluate each companys liquidity, solvency and profitability. Your discussion should compare both companies to each other and the industry average.

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