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please solve it urgently I will upvote you Task 4-400 words 4 ABC is now in its 8th year of operations. Company has gone through
please solve it urgently I will upvote you
Task 4-400 words 4 ABC is now in its 8th year of operations. Company has gone through significant expansion procedure during the last year due to identified growth opportunities. ABC now has created a good brand image and they have an increasing client base due to the excellent customer service they maintain. ABC operates in multiple outlets and Alex has plans to extend its retail operations to overseas countries. He prefers to start with a direct investment in the Asian region. However, he needs to understand the actual performance of the organisation in terms of profitability, liquidity and investment. Alex has requested you (Accountant of ABC), to submit a report covering below mentioned areas. (Note: You are also provided with the below mentioned ratios of ABC to support your report) Details Current Year (Year-X) Last Year (Year - Y) 24.3 5.60 24.3 Gross Margin (%) Operating Margin (%) 5.70 Return on Assets (%) 8.01 8.10 Current Ratio 0.97 0.88 Quick Ratio 0.24 0.20 Inventory Turnover 8.11 8.08 Debt/Equity 0.54 0.58 Return on Investment (%) 16.9 17 Return on Equity (%) 20.76 21 Earnings Per Share 5.05 5.07 4.1 Referring to the ratios provided in the table, analyse, compare ratios for the two years and interpret the status of profitability, liquidity and investments of ABC. 4.2 Explain why an organisation shouldn't purely depend on ratio analysis; in other words, limitations in ratio analysis. 4.3 Briefly explain advantages in benchmarking for an organisation like ABCStep by Step Solution
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