write anaylsis for this 6 Liquidity ratios
result in comparsion of the two companies.
and also please write wich company has a
better Liquidity ratios
1. Liquidity Ratios The capacity of paying off debts in the respective years can be acknowledged with the current rate and the cash rate indicating the portion that requires attention (thebalance.com, 2021). 1st Calculate Receivable Turnover in Times and days = Revenue Average Receivable DBS ,000,000 2020 2019 2018 2017 2016 Revenue 39,901 44,430 44,065 42,693 40,557 Average Receivable 5,000 3,000 8,000 6,000 7,000 Receivable Turnover in Times 7.98 14.81 5.51 7.12 5.79 Receivable Turnover in Days 46 25 66 51 63 DHL ,000,000 Revenue 2020 2019 2018 2017 2016 47,684 45,833 55,000 60,444 57,334 Average Receivable 16,364 14,197 14,049 14,443 12,065 Receivable Turnover in Times 2.91 3.23 3.92 4.19 4.75 Receivable Turnover in Days 125 113 93 87 77 2nd Calculate Current Ratios = Current Assets / Current Liabilities DBS ,000,000 2020 2019 2018 2017 2016 Current Assets 12,471 12,615 11,881 10,811 11,034 Current Liabilities 20,479 18,081 15,831 14,688 15,142 Current Ratios 0.61 0.70 0.75 0.74 0.73 DHL 2020 2019 2018 2017 2016 ,000,000 Current Assets 17,676 15,052 13,341 14,756 14,129 Current Liabilities 16,413 16,873 9,627 14,399 14,818 Current Ratios 1.08 0.89 1.39 1.02 0.95 3rd Calculate Quick Ratios = Quick Assets / Current Liabilities DBS ,000,000 Quick Assets 2020 2019 2018 2017 2016 5,347 5,491 4,757 3,687 3,910 Current Liabilities 20,479 18,081 15,831 14,688 15,142 Quick Ratios 0.26 *Cash +Marketable securities +Net Receivables 0.30 0.30 0.25 0.26 DHL ,000,000 Quick Assets 2020 2019 2018 2017 2016 8,176 5,552 3,841 5,256 4,629 Current Liabilities 16,413 16,873 9,627 14,399 14,818 Quick Ratios 0.50 "Cash +Marketable securities +Net Receivables 0.33 0.40 0.37 0.31 4th Calculate Cash Ratio = Cash + Marketable Securities / Current Liabilities DBS ,000,000 2020 2019 2018 2017 2016 Cash + Marketable Securities 6,767 6,911 6,177 5,107 5,330 Current Liabilities 20,479 18,081 15,831 14,688 15,142 Cash Ratio 0.33 0.38 0.39 0.35 0.35 DHL ,000,000 Cash + Marketable Securities 2020 2019 2018 2017 2016 7,800 5,250 3,652 5,112 4,546 Current Liabilities 16,413 16,873 9,627 14,399 14,818 Cash Ratio 0.48 0.31 0.38 0.36 0.31 5th Calculate Revenue to Cash Ratio = Revenue / Average Cash and cash equivalents & Calculate Days Revenue Held in Cash = 365 / Revenue to Cash Ratio (Times) DBS ,000,000 2020 2019 2018 2017 2016 Revenue 39,901 44,430 44,065 42,693 40,557 Average Cash and cash equivalents 6,839 6,544 5,642 5,219 2,665 Revenue to Cash Ratio (Times) 5.83 6.79 7.81 8.18 15.22 Days Revenue Held in Cash 63 54 47 45 24 DHL ,000,000 Revenue 2020 2019 2018 2017 2016 47,684 45,833 55,000 60,444 57,334 Average Cash and cash equivalents 6,525 4,451 4,382 4,829 2,273 Revenue to Cash Ratio (Times) 7.31 10.30 12.55 12.52 25.22 Days Revenue Held in Cash 50 35 29 29 14 6th Calculate operating cash flow / Average CL (Times) DBS ,000,000 operating cash flow 2020 2019 2018 2017 2016 1,420 3,278 3,371 2,329 3,648 Average Current Liability operating cash flow / Average CL (Times) 19,280 0.07 16,956 0.19 15,260 0.22 14,915 0.16 14,833 0.25 DHL ,000,000 operating cash flow 2020 2019 2018 2017 2016 4,042 2,782 4,674 3,297 2,439 Average Current Liability operating cash flow / Average CL (Times) 16,643 0.24 13,250 0.21 12,013 0.39 14,609 0.23 11,409 0.21
