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Compare the Solvency, Liquidity and Profitability for the two companies and Small Conclusion
Salama Wataniy Insurance Co. a Insurance Co. $61,750 $362,000 39.900 12,950 27,680 69,785 Income Statement Data for 2020 Net Sales Cost of Goods Sold Selling and administrative expense Interest expense Other Income (Expense) Income Tax Expense Net Income Balance Sheets Data (End of 2020) 548 1,745 -68 -362 1,198 6,623 $3,245 $13,580 $20,245 26,200 $41,850 $11,245 Current Assets NonCurrent Assets Total Assets Current Liabilities Long-term Debt Total stockholders' Equity Total Liabilities and stockholders' Equity Beginning-of-2020 Balances $48,750 124,750 $159,750 $50,450 40,780 71,450 $169,750 17,400 15,450 $41,500 $43,850 13,240 Total Assets Total stockholders' Equity Current Liabilities Total Liabilities Other Data $161.250 62,480 52,640 94,500 10,300 28,750 $8,100 8,020 Average Net Accounts Receivable Average Inventory Net Cash Provided by Operating Activities Capital Expenditures Dividends $4,120 32,500 25,900 4,900 1,452 10.750 495 3,850 Ratio Analysis Formula Current rato Liquidity Salama Watasha Interpretation Insurance Insurance C. ce 1.96 1092 Salam, they have higher liquidity 7.62 Wataniya, they collect faster Liquidity 1975 Liquidity 165days/Account Receivable Tumover 0.045 0.06 Account Receivable Tumover Average Collection Period Inventory Turnover Days in Inventory Liquidity Cost of goods sold average 4.97 inventories LiquidityCOGS/Average inventory 73.36 - 365 days Wataniya, they receive payments faster Salanta, they selll inventory faster Salam, they have lower days inventory 42855 10.45 050 Current Cash Debt Coverage Net Cash flow from Operating Activiti Average Current Liabilities Profit Margin Net Income Net Sales X 100 5.79% Ratio tomoure Protably Salmansurance Cohaving pate profitability Ratio Net Income Total Assets 0.08 09 Return Assets The return on equity is a measure of the sotitofa business in ion to othe equity Wataniya Insurance Co potter 9.19 0.14 Return Kommen Stockholder's Fquity Salam is better because they have higher return stockholders quity Debe to Assets Total Debt Total Asset 0.42 0.26 Times Interest Earned EBITDA Interest Expense P.11 12:38 Cash Debt Coverage Cash Flow from Operations 0.28 Total Business Debt 1064 free Cash Flow 7207.00 530.00 Net Income. Non Cash Expenses - Increase in working capital capital Expenditures Asset Turnover Net Sales Average Total Assets 1.44 2.26 Theme over ratio Penures the Jefficiency of a company's acts generating peners Watanya Insurance Company is better