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Thanks Case Study 2 Financial Analysis (4 questions on this page, 15 marks) The following two businesses are in the same industry, but operate different
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Case Study 2 Financial Analysis (4 questions on this page, 15 marks) The following two businesses are in the same industry, but operate different business models. The net profit margin for both businesses is 4%. Ratio A B 16.7% 17.9% Return on Investment (ROI) Return on Owners Equity 11.3% 12.9% Debtor Turnover 14 days 28 days Current Ratio 1.5 2.3 75% Gross Profit Margin Inventory turnover 62% 20 days 30 days Required: From a shareholder perspective, which business is performing well and why? You must include mention of the ratio(s) you are using to make this assessment in your responseStep by Step Solution
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