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The following ratios are computed based on the financial data of SuperShop, a large company that operates in food and staple retailing. Ratio 2019 2020
The following ratios are computed based on the financial data of SuperShop, a large company that operates in food and staple retailing. Ratio 2019 2020 Operating profit margin 4.54% 5.06% ROA 7.96% 5.74% Current ratio 1.12:1 1.23:1 Quick ratio 0.28:1 0.23:1 Average Inventory turnover period 36.51 days 35.26 days Average Accounts Receivable settlement period 0.69 days 0.73 days Average Accounts Payable settlement period 40.62 days 43.04 days Required: (a) Interpret the change in the operating profit margin in 2019-2020. Consider carefully what aspect of the operating had changed in the period. (b) Interpret the change in the ROA in 2019-2020. Consider carefully what aspect of the operating had changed in the period
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