You were assigned the task of analysing Mr Nobitha's loan request. Based on the given information,...
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You were assigned the task of analysing Mr Nobitha's loan request. Based on the given information, answer the following questions. a. Compute the financial ratios for both years, and using the average industry evaluate the firm in the following category: i. Liquidity Asset Management Debt Management iv. ii. ii. Profitability Industry Average Ratio this year Current Ratio 1.78 Acid Test Ratio 1.55 Inventory Turnover 7.41 Average Collection Period 22.8 Non-Current Asset 1.54 Turnover Total Asset Turnover 0.89 Debt 75% Times Interest Earned 6.4 Net Profit Margin 4.70% Return on Assets 4.60% Return on Common Equity 20.70% You were assigned the task of analysing Mr Nobitha's loan request. Based on the given information, answer the following questions. a. Compute the financial ratios for both years, and using the average industry evaluate the firm in the following category: i. Liquidity Asset Management Debt Management iv. ii. ii. Profitability Industry Average Ratio this year Current Ratio 1.78 Acid Test Ratio 1.55 Inventory Turnover 7.41 Average Collection Period 22.8 Non-Current Asset 1.54 Turnover Total Asset Turnover 0.89 Debt 75% Times Interest Earned 6.4 Net Profit Margin 4.70% Return on Assets 4.60% Return on Common Equity 20.70%
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Answer i 1Analysis of liquidity acurrent ratio current ratiocurrent asset by current liabilityIn a s... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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