ue 3 Fowing accounting ratios have been calculated for three firms Ras/ firms Y Cent Ratio...

 

Transcribed Image Text:

ue 3 Fowing accounting ratios have been calculated for three firms Ras/ firms Y Cent Ratio 3:1 2:1 cid Test Ratio Debt Service Coverage Ratio Inventory Turnover Debtors' Turnover Creditor's Turnover Fixed Assets' Turnover Net Profit Margin Investment Turnover Current Market Price per share Rs. EPS D/E Ratio X 2:1 12 times 5 times 7 times 4 times 10 times 11% 5 times 100 Rs. 2 3:2 10 times 6 times 5 times 5 times 12 times 12% 4 times 120 Rs. 3 2:3 Z 4:1 1:1 15 times 7 times 6 times 3 times 8 times 13% 5 times 90 Rs. 4 5:7 Based on the above data, evaluate financial health of three firms and write in fourteen points only (14 marks) ue 3 Fowing accounting ratios have been calculated for three firms Ras/ firms Y Cent Ratio 3:1 2:1 cid Test Ratio Debt Service Coverage Ratio Inventory Turnover Debtors' Turnover Creditor's Turnover Fixed Assets' Turnover Net Profit Margin Investment Turnover Current Market Price per share Rs. EPS D/E Ratio X 2:1 12 times 5 times 7 times 4 times 10 times 11% 5 times 100 Rs. 2 3:2 10 times 6 times 5 times 5 times 12 times 12% 4 times 120 Rs. 3 2:3 Z 4:1 1:1 15 times 7 times 6 times 3 times 8 times 13% 5 times 90 Rs. 4 5:7 Based on the above data, evaluate financial health of three firms and write in fourteen points only (14 marks)

Answer rating: 100% (QA)

Based on the given data here are the evaluations of the financial health of the three firms X Y and Z 1 Current Ratio Firm Y has the highest current r... View the full answer