9554

  • Liquidity – Current ratio and Quick Ratio
  • Profitability – Return on Equity ratio and Return on Assets ratio

You are required to analyse and interpret the above ratios using the theoretical concepts introduced in this subject to evaluate the company’s operations and performance. Then, upon collecting observations from the last 3–5 years and industry aggregates, answer the following:

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now
  1. Based on a trend analysis, elaborate on whether the company you have chosen is improving or deteriorating in terms of its liquidity and profitability ratios, highlighting any areas (and appropriate actions) for improvement.
  2. How does the company compare to its peers, i.e. benchmarking? Comparison can be done from the industry- averages (or else, to those from its main competitor)? Would there be any issues of concern and, if so, how to address them?
  3. Is it possible to identify any relationship between liquidity and profitability ratios? Which is more important for the survival of the company in long run as well as short run?
  4. Calculate ‘Operating cycle’ and ‘Cash cycle’ of your selected manufacturing company. How does understanding of all the elements of the operating and cash cycle help in managing working capital efficiently.
  5. The required word length for this assessment is 1300 words (plus or minus 10%).