The financial statements of Anglo American Platinum Limited (Amplats) are presented in Appendix B following the financial statements for Eastern Platinum Limited (Eastplats) in Appendix A Instructions (a) Calculate liquidity ratios for 2010 that you believe are relevant for each company Which compa...

a Liquidity ratios Eastplats appears to be more liquid Eastplats has a significantly higher current ratio than Amplats Its receivables turnover is sub ...

The financial statements of Anglo American Platinum Limited (Amplats) are presented in Appendix B following the financial

Question:

The of Anglo American Platinum Limited (Amplats) are presented in Appendix B following the for Eastern Platinum Limited (Eastplats) in Appendix A.
Instructions
(a) Calculate liquidity ratios for 2010 that you believe are relevant for each company. Which company is more liquid?
(b) Calculate ratios for 2010 that you believe are relevant for each company. Which company is more solvent?
(c) Calculate profitability ratios for 2010 that you believe are relevant for each company. For the return on common shareholders' equity ratio, note that neither company has any preferred shares. Which company is more profitable?
(d) What information that is not included in the might also be useful for comparing Eastplats and Amplats?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...