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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

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 Ltds short term and long term financial risk. (Word limit - 250 words)

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