Question: The following ratios are computed based on the financial data of SuperShop, a large company that operates in food and staple retailing. Ratio 2019 2020

The following ratios are computed based on the financial data of

The following ratios are computed based on the financial data of SuperShop, a large company that operates in food and staple retailing. Ratio 2019 2020 Operating profit margin 4.54% 5.06% ROA 7.96% 5.74% Current ratio 1.12:1 1.23:1 Quick ratio 0.28:1 0.23:1 Average Inventory turnover period 36.51 days 35.26 days Average Accounts Receivable settlement period 0.69 days 0.73 days Average Accounts Payable settlement period 40.62 days 43.04 days Required: (a) Interpret the change in the operating profit margin in 2019-2020. Consider carefully what aspect of the operating had changed in the period. (b) Interpret the change in the ROA in 2019-2020. Consider carefully what aspect of the operating had changed in the period

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