Question: 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.

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.

20192018Current Ratio2.83:11.88:1Return on capital employed23.22%14.89%Trade receivables period39.64 days27.89 daysInventory Turnover period35 days55 days

Additional information Credit terms to debtors are 30 days. The interest rate on long-term borrowing is 15% p.a

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