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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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