Question

3. The following information is given with respect to the ratio's of two companies
Aman Ltd
Roger Ltd
2:01
1.60:1
1:01
1.35:1
Current ratio
Quick Ratio
Return on investment
Debt Equity Ratio
1396
1:01
Define the concepts of Current and Quick ratio's and also, reflect on your
understanding towards the financial performance of the companies by looking to the
above information​

Answer 1

Answer:

1) Current Ratio and Quick Ratio are liquidity ratios

Current Ratio = Current Asset / Current Liability

Standerd Current Ratio = 2

Quick Ratio = Quick Asset / Current Liability

Standerd Quick Ratio = 1

In there Aman Ltd is Better than Roger Ltd becouse both Current and Quick Ratios are higher than Roger Ltd.

2) Return on Investment = Net Income / Investment

In there Aman Ltd is Better than Roger Ltd becouse ROI is greater than Roger Ltd

Debt to Equity Ratio = Total Debt / Equity

A Lower Debt to Equity Ratio Means Risk is also Lower Becouse There using lower debt compared to equity thus Roger Lted has less risk than Aman Ltd

Answer 2

Answer:

using factor method, divide the following polynomial by a binomial