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Q21 The ratios of two companies are presented as follows: Company Net Profit Margin Current Ratio A 12% 2.5 B 20% 0.5 Based on the

Q21

The ratios of two companies are presented as follows:

Company

Net Profit Margin

Current Ratio

A

12%

2.5

B

20%

0.5


Based on the above information, which of the following statement is not true: Company B has a higher profitability and a poor solvency positionCompany A has a lower profitability and a sound solvency positionCompany A has a higher profitability and a poor solvency positionCompany A has enough current assets to meet its short term obligations



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