1q

3.3 Study the ratios provided below which were calculated from a project of Britar Limited over the two-year period and provide suitable comments for each ratio. 2019 2018 Current ratio 2.83:1 1.88:1 (3 marks) 23.22% 14.89% Return on capital employed Trade receivables period Inventory turnover period 39.64 days 27.89 days (2 marks) (2 marks) (2 marks) 35 days 55 days Additional information Credit terms to debtors are 30 days. The interest rate on long-term borrowing is 15% pa. OM COMPAC