The financial characteristics of companies vary from company to company, depending on the industry and their operations. Reva Limited is a textile manufacturing company, whose ratios for the latest 3 years are given below:

a Comment on the liquidity of Reva. Also comment on if Reva generating adequate operating profits on the firms assets. (15 Marks) 400 Words

b Comment how Reva is financing its assets. Are the equity shareholders receiving a good return on their investment? (15 Marks) 400 Words

CI cil Ratios Current Ratio Quick Ratio Debtors Turnover Average Collection Period Inventory Turnover Ratio ROI Operating Profit Margin Total Asset Turnover Fixed Assets Turnover Debt Ratio Interest Coverage ROE 2019 2 1 5 78 Days 9 19% 17% 1 3 46% 15 21% 2020 2 2 5 77 Days 10 21% 17% 1 4 45% 16 23% 2021 2 1 5 75 Days 6 10% 8% 1 4 58% 4 12%