QUESTION 5 [20 MARKS] The current ratio, quick ratio, gross profit margin and net profit margin for the past 2 years.

a) Briefly assess the above ratios. [12 marks]

Group Company 2020 2019 2020 2019 Current ratio 0.59 0.65 187.02 205.49 Current assets/Current liabilities) (1,079,882/1,816,829) (1,073,013/1,654,750) (294,560 / 1.575) (408,111 / 1986) 2020 2019 2020 2019 Quick ratio 0.27 0.31 187.02 205.49 (Current assets - Inventories)/Current liabilities (1,079,882 - 597,270) /1,816,829 (1,073,013 - 551,827) / 1,654,750 (294,560 / 1.575) (408,111 / 1986) 2020 2019 2020 2019 Gross Profit Margin 36.329637.5896 100.0096 100.00% (Gross profit / Revenue) Net Profit Margin 10.2196 12 19% 99.8196 99.7396 (Profit / Revenue)