Question

Analysis of the relevant liquidity and asset management ratios for the selected companies.

Rubrics

Clear and detailed analysis and interpretation of the liquidity and asset management ratios.

Able to provide relevant factors that influence the companies$$ financial position.

Summary of Financial Ratio Analysis and Asset Management Ratios

Company $-$ Nestle

$2020$

Credit Sales $5,412,180$

Accounts Receivable $472,705$

Cost of Goods Sold $3,446,678$

Inventory $597,270$

Sales $5,412,180$

Net Non$-$Current Asset $1,294,083$

Total Assets $2,861,371$

Net Working Capital $(736,947)$

Current ratio $0\mathrm{.}59$

"Quick ratio

$"0\mathrm{.}27$

Account Receivable Turnover $($Times$)11\mathrm{.}46$

Average Collection Period $($Days$)31\mathrm{.}39$

Inventory Turnover $($Times$)5\mathrm{.}77$

Average Inventory Sales Period $($Days$)62\mathrm{.}38$

Non$-$current Asset Turnover $($Times$)4\mathrm{.}18$

Total Asset Turnover $($Times$)1\mathrm{.}89$

$2021$

Credit Sales $5,733,816$

Accounts Receivable $377,050$

Cost of Goods Sold $3,775,581$

Inventory $744,987$

Sales $5,733,816$

Net Non$-$Current Asset $1,781,968$

Total Assets $2,984,831$

Net Working Capital $(788,490)$

Current ratio $0\mathrm{.}59$

"Quick ratio

$"0\mathrm{.}20$

Account Receivable Turnover $($Times$)15\mathrm{.}22$

Average Collection Period $($Days$)23\mathrm{.}66$

Inventory Turnover $($Times$)5\mathrm{.}07$

Average Inventory Sales Period $($Days$)70\mathrm{.}79$

Non$-$current Asset Turnover $($Times$)3\mathrm{.}22$

Total Asset Turnover $($Times$)1\mathrm{.}92$

$2022$

Credit Sales $6,664,145$

Accounts Receivable $445,201$

Cost of Goods Sold $4,603,260$

Inventory $115,083$

Sales $6,664,145$

Net Non$-$Current Asset $1,954,793$

Total Assets $3,554,011$

Net Working Capital $(659,753)$

Current ratio $0\mathrm{.}71$

"Quick ratio

$"0\mathrm{.}21$

Account Receivable Turnover $($Times$)14\mathrm{.}98$

Average Collection Period $($Days$)24\mathrm{.}05$

Inventory Turnover $($Times$)4\mathrm{.}13$

Average Inventory Sales Period $($Days$)87\mathrm{.}13$

Non$-$current Asset Turnover $($Times$)3\mathrm{.}42$

Total Asset Turnover $($Times$)1\mathrm{.}88$