urgant

Question 3 Martaban Limited and Patterson Limited are manufacturers of water purifier machines for both residential and commercial use. Both companies have been in the water purifier industry for over ten years since incorporating the companies in Uzbekistan. Their products are well established in the domestic and international markets. The companies have also received global recognition and awards in the industry. The following ratios for the two companies are based upon the financial statements of 31 December 2021 and were as follows: Martaban Limited Patterson Limited Return on capital employed 18.5% 18.9% Earnings per share 23 cents 23 cents Price-earnings ratio 8.5 9.5 Current ratio 2.1 Quick ratio (acid test) 0.7 1.1 Trade payables payment period 49 days 39 days Capital gearing ratio 11% 5% Dividend yield 3% 4% 1.2 Required: You are required to analyse both companies' financial performance and advise investors which company has investment potential. Provide reasons for your advice. (Total 33 marks)