ME Video 6.2% Activity 2: Case Study You are the financial manager of ME Video Game Company Limited. Your accountant has calculated the financial ratios for the company and its competitor, PlayGame Company Limited. Ratios Win/Lose/Draw PlayGame Co Game Co Ltd (reasons) Ltd Profitability Operating Profit Ratio 25% 20% Net Profit Ratio 12.5% 12.5% Retum on Equity 9.5% 8.3% Retum on Asset 7.0% Liquidity 4 times Management Efficiency Inventory Turnover Ratio 3 times 4.8 times Fixed Asset turnover ratio 2.2 times Total Asset turnover 0.75 times 0.70 times Debt Management Debt to asset ratio Time interest earned Market value ratios Market Price to book value ratio (M/B) 3.24 Market Price to Earnings per share ratio 11 (P/E) Current Ratio 9 times 1.8 times 46% 52% 7 times 4.5 times 1.5 Required? Based on the calculations, advice the management which company is better by chopping (WIN LOSE/DRAW) next to that ratio