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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

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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 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 company's liquidity, solvency and profitability. Your discussion should compare both companies to each other and the industry average. (6 marks) Word limit 200

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