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Required: Used the information above to calculate and evaluate the following ratios for both the companies and which you prefer. Where applicable, round off answers
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Used the information above to calculate and evaluate the following ratios for both the companies and which you prefer. Where applicable, round off answers correctly to two decimal places):
- 1.1 Current ratio
- 1.2 Liquidity ratio
- 1.3 Debtors collection period
- 1.4 Creditors payment period - (Use the cost of sales figure)
- 1.5 Stock turnover
- 1.6 Return on equity (ROCE)
- 1.7 Asset turnover (Total assets)
- 1.8 Which company would you prefer to invest in and give a reason
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