Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. (6 marks) Word limit 200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A One Year Accounting Course

Authors: Trevor Gambling

21st Edition

0080130275, 9780080130279

More Books

Students also viewed these Accounting questions

Question

Demonstrate knowledge of the company/organization and the position.

Answered: 1 week ago

Question

Describe several models for organizing a human resources department

Answered: 1 week ago