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Questions Case 2: 1. Describe profitability ratios 2. Describe solvency ratios 3. Using the annual report allocated to you, analyse the profitability performance of the
Questions Case 2: 1. Describe profitability ratios 2. Describe solvency ratios 3. Using the annual report allocated to you, analyse the profitability performance of the company allocated to you for 2020 by calculating the ratios below: a. Profit margin b. Assets turn-over c. Return on assets d. Return on common stock (ordinary share) equity e. Earnings per share f. Price earnings ratio g. Payout ratio 4. Compare the ratios that you find to the industry average of the same business line as benchmark and give comments on the profitability performance of your company that indicated by each ratio. Download the industry average ratio from https://readyratios.com/sec/industry. 5. Using the annual report allocated to you, analyse the solvency performance of the company allocated to you for 2020 by calculating the ratios below: a. Debt to assets ratio b. Times interest earned 6. Compare the ratios that you find to the industry average of the same business line as benchmark and give comments on the solvency performance of your company that indicated by each ratio. Download the industry average ratio from https://readyratios.com/sec/industry
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