The following are the actual ratios of Gypsy Ltd and the corresponding standards: Ratio Current ratio Liquid
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The following are the actual ratios of Gypsy Ltd and the corresponding standards:
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Ratio Current ratio Liquid ratio Gross profit margin Operating profit margin Net profit margin Creditor payment period Inventory turnover Debtors collection period Fixed asset turnover ratio Debt: equity ratio Return on shareholders' net worth Actual 6:1 2:1 22% 16% 8% 30 days 8 times 45 days 3 times 2.50:1 6% Industry Average 4:1 1.50:1 22% 14% 10% 40 days 10 times 56 days 4 times 1.75:1 10%
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1 Gypsy Ltd is having better level of current assets as compared to the prescribed standard undoubtedly it indicates better liquidity position but at ...View the full answer
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