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These are the accounting ratios for a company between 2017 and 2018. Accounting Ratios 2017 2018 Percentage Change Profit Margin 2.52% 1.01% -59.85% 17.73% 7.73%
These are the accounting ratios for a company between 2017 and 2018. Accounting Ratios 2017 2018 Percentage Change Profit Margin 2.52% 1.01% -59.85% 17.73% 7.73% -56.38% Return on Capital Employed Income Gearing 81.39% 151.96% 86.72% Inventory Turnover Ratio 1.70 days 1.68 days -1.56% Debtors Turnover Ratio 29.38 days 30.89 days 5.12% Quick Ratio 50.45% 49.01% -2.86% Asset Gearing 80.35% 77.94% -3.01% 331.03% 371.60% Shareholder's equity ratio 12.25% Asset Cover -0.83 -0.74 -11.38% Current Ratio 51.42% 50.05% -2.66%% Looking at these accounting ratios, explain why the company would become insolvent. Also talk about the going concern position for the company. These are the accounting ratios for a company between 2017 and 2018. Accounting Ratios 2017 2018 Percentage Change Profit Margin 2.52% 1.01% -59.85% 17.73% 7.73% -56.38% Return on Capital Employed Income Gearing 81.39% 151.96% 86.72% 1.68 days -1.56% Inventory Turnover Ratio Debtors Turnover Ratio 1.70 days 29.38 days 30.89 days 5.12% Quick Ratio 50.45% 49.01% -2.86% Asset Gearing 80.35% 77.94% -3.01% 331.03% 371.60% 12.25% Shareholder's equity ratio Asset Cover -0.83 -0.74 -11.38% Current Ratio 51.42% 50.05% -2.66%% Looking at these accounting ratios, explain why the company would become insolvent. Also talk about the going concern position for the company
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