Question
The following is the financialperformance and position report of the KAQ and TAQ Companies operating in the same industry for the year ended 30th January
The following is the financialperformance and position report of the KAQ andTAQ
Companies operating in the same industry for the year ended 30th January 2021
| RATIOS | KAQ | TAQ |
| Gross profitmargin | 20% | 15% |
| Net profit margin | 14% | 12% |
| Return on Investment (ROI) | 17% | 18% |
| Return on Equity (ROE) | 15% | 18% |
| Current ratio | 4:1 | 2:1 |
| Quick ratio/Acid test ratio | 2:1 | 1:1 |
| Debt equityratio | 120% | 80% |
| Dividend pershare (DPS) | 2500 TZS | 3500 TZS |
| Price earnings ratio (P/E) | 2 | 1/2 |
| Inventory turnover | 4 Times | 2Times |
| Debtors turnover | 3 Times | 2Times |
| Creditors turnover | 2Times | 3Times |
| Creditors days | 30 Days | 45 Days |
| Debtors days | 40 Days | 31 Days |
| Asset turnover | 2 Times | 4Times |
| Inventory Days | 60 Days | 70 Days |
| Earnings per share (EPS) | 1400 TZS | 1600 TZS |
| Return on Capital Employed (ROCE) | 1500 TZS | 2000 TZS |
Required:
Comment on the general performance and specifically show the companyto invest, lend moneyand the company to buy.
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Auditor Independence Auditing Corporate Governance And Market Confidence
Authors: Ismail Adelopo
1st Edition
1409434702, 978-1409434702
