Question
The following information has been provided by XY Company. Ratio 2018 2019 Current ratio 2.3 2.7 Inventory turnover 60 days 72 days Debtors average settlement
The following information has been provided by XY Company.
Ratio | 2018 | 2019 |
Current ratio | 2.3 | 2.7 |
Inventory turnover | 60 days | 72 days |
Debtors average settlement | 45 days | 52 days |
Creditors average settlement | 35 days | 30 days |
Comment on the ratios given above. You must indicate whether the firm appears to be performing well or otherwise. Justify your views.
Hints: You can comment on each ratio and then on the overall big picture, and specify additional information/ratio(s) that would provide relevant information, and give relevant recommendations. Suggested length: 500-600 words
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