Analyze company A's 'profitability' and 'efficiency' for these years and consider industry averages. Return on asset (%)

Analyze company A's 'profitability' and 'efficiency' for these years and consider industry averages.

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Return on asset (%) Return on equity (%) Net profit margin (%) Gross profit margin (%) Interest coverage ratio Quick ratio Company A 2020 2021 5,3 5,5 37 36 2,59 2,58 25,8 26,1 4,0 4,4 0,3 0,2 0,7 0,6 14 13 95 97 2,06 2,15 0,9 0,8 5 0,50 Current ratio Inventory turnover Debtor turnover Asset turnover Debt to asset ratio Debt to equity ratio 6 Long term debt to total assets 0,52 Industry Average 2020 2021 6 7 16 23 4 5 35 36 5 7 0,43 0,45 1 1 4 4 40 42 1 1 0,7 3 0,4 0,7 3 0,4 Return on asset (%) Return on equity (%) Net profit margin (%) Gross profit margin (%) Interest coverage ratio Quick ratio Company A 2020 2021 5,3 5,5 37 36 2,59 2,58 25,8 26,1 4,0 4,4 0,3 0,2 0,7 0,6 14 13 95 97 2,06 2,15 0,9 0,8 5 0,50 Current ratio Inventory turnover Debtor turnover Asset turnover Debt to asset ratio Debt to equity ratio 6 Long term debt to total assets 0,52 Industry Average 2020 2021 6 7 16 23 4 5 35 36 5 7 0,43 0,45 1 1 4 4 40 42 1 1 0,7 3 0,4 0,7 3 0,4

Answer rating: 100% (QA)

Profitability 1 Return on Assets ROA Company As ROA increased from 53 to 55 over the two years indicating improved efficiency in generating profits fr... View the full answer