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)