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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 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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