Question
QUESTION THREE A financial analyst calculated the ratios for two companies and compared them with those of the peers as below; Ratio Open Group Super
QUESTION THREE
A financial analyst calculated the ratios for two companies and compared them with those of the peers as below;
RatioOpen GroupSuper GroupOther peers
2022 2021 2022 20212022
Net non-current
operating assets
turnover1.3 1.4 2.4 2.5 2.1
Accounts receivables
Turnover51.4 79.7 140.7 132.0 69.6
Inventories turnover 1.7 1.7 2.7 2.79.2
Accounts payables
Turnover2.9 3.2 4.2 4.7 7.4
Required
Discuss how the financial analyst can use this information to ensure proper management of assets under the control of the two companies.(6 Marks)
QUESTION THREE
A financial analyst calculated the ratios for two companies and compared them with those of the peers as below;
RatioOpen GroupSuper GroupOther peers
2022 2021 2022 20212022
Net non-current
operating assets
turnover1.3 1.4 2.4 2.5 2.1
Accounts receivables
Turnover51.4 79.7 140.7 132.0 69.6
Inventories turnover 1.7 1.7 2.7 2.79.2
Accounts payables
Turnover2.9 3.2 4.2 4.7 7.4
Required
Discuss how the financial analyst can use this information to ensure proper management of assets under the control of the two companies.(6 Marks)
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
6th Edition
0273638335, 978-0273638339
