Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability
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Question:
Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis.
REQUIRED:
a) Explain how profitability ratios give an impact to management decision making.
b) Following are the financial statement of Suci Berhad for year 2022.
Based on the statement above, calculate the following ratios:
i. Current ratio
ii. Quick ratio
iii. Inventory turnover
iv. Total asset turnover
v. Debt ratio
vi. Net profit margin
vii. Return on asset
viii. Return on equity
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date: