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The following ratios for The A2 Milk Limited and Synlait Limited were calculated for 2020 and 2019: A2 Milk Ltd. Synlait Ltd. 2020 2019 2020

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The following ratios for The A2 Milk Limited and Synlait Limited were calculated for 2020 and 2019: A2 Milk Ltd. Synlait Ltd. 2020 2019 2020 2019 Return on Assets 44.52% 48.54% 9.33% 12.81% Return on Equity 40.15% 42.83% 13.69% 17.93% Current Ratio 3.69 times 3.15 times 1.00 times 0.76 times Days in Inventory 61 days 54 days 72 days 68 days Debt ratio 21.97% 21.76% 59.36% 57.20% Based on the above ratios, comment on A2 Milk Ltd's short term and long term financial risk. (Word limit - 250 words)

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