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Business, 24.05.2021 18:50 rodneydean5780

Analyze the overall financial situation from a cross-sectional viewpoint. Compare each company’s ratios with the industry average. What are the strengths and weaknesses of each company? Which company is best to invest in and why? (3 marks) Financial ratio Industry Average
Current ratio 2
Quick ratio 1.91
Inventory turnover 8.12 times
Average age of inventory 42 days
Average collection period 30 days
Average payment period 50 days
Asset turnover 0.85
Debt ratio 50%
Debt to equity ratio 90%
Times interest earned ratio 5 Times
Gross profit margin 32%
Operating profit margin 14%
Net profit margin 8%
ROA 7%
ROE 12%

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