Rongtai, a listed company based in mainland China, manufactures and sells chemical materials. A financial analyst has compiled the following data for Rongtai and
Rongtai, a listed company based in mainland China, manufactures and sells chemical materials. A financial analyst has compiled the following data for Rongtai and its industry: Gross profit margin Gross profit margin (industry average) % change in sales revenue % change in sales revenue (industry average) % change in A/R A/R over sales revenue A/R over sales revenue (industry average) Auditor 2019 32% 24% -12.24% -3.17% 4.10% 46.70% 14.09% ZhuJiang Required: Identify red flags based on the data in the above table as a financial analyst. 2018 30% 23% 15.32% 15.49% 15.40% 38.25% 13.30% DaHua
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