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
Answers
Answered by
3
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
Answered by
1
Answer:
using factor method, divide the following polynomial by a binomial
Similar questions