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You are hired as an an analyst of following two companies, your task is to analyze financial of Company X and Company Y . The
You are hired as an an analyst of following two companies, your task is to analyze financial of Company X and Company Y
The following information has been collected from Company's X and Y Annual Report.
Company X and Y have the same total assets.
Company X has a higher total assets turnover than Company Y Company X has a higher profit margin than Company Y
Company Y has a higher inventory turnover ratio than Company X Company Y has a higher current ratio than Company X
Based on the above information, determine if the following is TRUE or FALSE. Explain in details your justification
a Company X must have a higher net income.
b Company X must have a higher ROE.
c Company Y must have a higher ROA.
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