In your role as Financial Analyst Assistant, how would you evaluate the company's performance in terms of profitability and liquidity compared with the average of the sector over the period based on the financial ratios given?

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Ratio Merpati Seni Bina Ltd (Construction industry) % Return on capital employed Asset turnover (times) Net profit margin (%) Current ratio Acid test ratio Accounts Receivables collection period (days) 2017 30.1 1.82 15.1 1.23:1 0.87:1 80 Account Payables collection period 120 (days) Gearing ratio (%) 81.5% 2018 28.6 1.72 17.2 1.22:1 0.87:1 88 122 70.8% 2019 26.0 1.88 13.5 1.3:1 0.99:1 95 118 63.7% Industry Average 26% 1.79 times 14.5% 1.5:1 1.03:1 83 days 120 days 32% Ratio Merpati Seni Bina Ltd (Construction industry) % Return on capital employed Asset turnover (times) Net profit margin (%) Current ratio Acid test ratio Accounts Receivables collection period (days) 2017 30.1 1.82 15.1 1.23:1 0.87:1 80 Account Payables collection period 120 (days) Gearing ratio (%) 81.5% 2018 28.6 1.72 17.2 1.22:1 0.87:1 88 122 70.8% 2019 26.0 1.88 13.5 1.3:1 0.99:1 95 118 63.7% Industry Average 26% 1.79 times 14.5% 1.5:1 1.03:1 83 days 120 days 32%

Answer rating: 100% (QA)

Based on the financial ratios provided heres an evaluation of Merpati Seni Bina Ltds performance in terms of profitability and liquidity compared to t... View the full answer