Subject - Financial Management

Q1. From the below given Firm's Historical Data, summarize the firms overall financial position for each ratio (13 marks)

Firm's Historical Data:

Ratio	Actual 2019	Actual 2020	Actual 2021	Industry Average 2021
Current ratio	1.6	1.8	1.84	1.3
quick ratio	1	0.9	0.75	1.1
Inventory turnover	5.2	5	9.09	11.2
Average collection period	50.7	55.8	23.21	44
Total Asset turnover	1.5	1.5	1.48	2
Debt ratio	45.80%	54.30%	1.23	24.50%
Times interest earned ratio	2.2	1.9	8	2.5
Gross profit margin	27.50%	28%	23.33	26%
Net profit margin	1.10%	1%	7.15	1.20%
Return on total assets	1.70%	1.50%	10.60	2.40%
Return on common equity	3.10%	3.30%	24.27	3.20%
Price/earnings ( P/E ) ratio	32.50%	38.7	9.12	4340.00%
Market /book ( M/B) ratio	1.00%	1.1	2.09	1.20%