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Question 3 The following items were taken from the financial statements ratios of MARAI and SADAFCO Inc. for the year of 2020: MARAI SADAFCO Analysis
Question 3
The following items were taken from the financial statements ratios of MARAI and SADAFCO Inc. for the year of 2020:
|
| MARAI | SADAFCO | Analysis |
| Current ratio | 1.7 | 0.8 |
|
| Inventory days | 7 days | 12 days |
|
| Receivables days | 25 days | 44 days |
|
| Debt ratio | 60% | 45% |
|
| Net Profit margin | 3% | 1% |
|
Analyze the above financial ratios and interpret which business is showing better financial indicators.
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