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The current ratio and debt ratio of Dee Pte Ltd are 1.8 and 0.4 respectively today. Examine how these ratios will change if plant and

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The current ratio and debt ratio of Dee Pte Ltd are 1.8 and 0.4 respectively today. Examine how these ratios will change if plant and machinery were purchased.

The following ratios are computed for three companies operating in different industries: Operating profit margin Days of sales outstanding Inventory turnover Fixed asset turnover Aee Pte Ltd 8.4% 2 day 8.8x 2.8x Bee Pte Ltd 13.9% 20 days 0.7x 0.6x Cee Pte Ltd 18.2% 65 days nil 12.3x

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