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urgent!! Presented below are selected ratios for Super Company. 2020 2019 2018 Current ratio 2.6 to I 2.4 to 1 2.1 to 1 Quick ratio
urgent!!
Presented below are selected ratios for Super Company.
| 2020 | 2019 | 2018 |
Current ratio | 2.6 to I | 2.4 to 1 | 2.1 to 1 |
Quick ratio | 0.8 to l | 1.1 to 1 | 1.2 to 1 |
Inventor Turnover Rate | 7.3 times | 8.4 times | 9.5 times |
Accounts Receivable Turnover Rate | 6.4 times | 7.1 times | 8.5 times |
Return on assets | 7.8% | 8.3% | 11.5% |
Profit as a percentage of sales revenue | 4.3% | 4.5% | 4.8% |
Required:
- Is the company collecting its accounts receivable more rapidly? Explain. (3 marks)
- Discuss the company's liquidity from the viewpoints of short-term creditors. (4 marks)
c. Comment on whether the trend of the company's profitability based on profit as a percentage of sales revenue and return on assets are improved or worsen. (4 marks)
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