Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question three a financial analyst calculated the

QUESTION THREE A financial analyst calculated the ratios for two companies and compared them with...

90.2K

Verified Solution

Question

Accounting

QUESTION THREE

A financial analyst calculated the ratios for two companies and compared them with those of the peers as below;

RatioOpen GroupSuper GroupOther peers

2022 2021 2022 20212022

Net non-current

operating assets

turnover1.3 1.4 2.4 2.5 2.1

Accounts receivables

Turnover51.4 79.7 140.7 132.0 69.6

Inventories turnover 1.7 1.7 2.7 2.79.2

Accounts payables

Turnover2.9 3.2 4.2 4.7 7.4

Required

Discuss how the financial analyst can use this information to ensure proper management of assets under the control of the two companies.(6 Marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

"A highway contractor is considering buying a new trench excavator that costs $222,000 and can dig...

Basic Math
1.2K views

A hospital employs 338 nurses and 35?% of them are male. How many male nurses are?...

Physics
1.2K views

One end of a spring of negligible unstretched length and spring constant k is fixed...

Physics
1.2K views

5 A ray of light falls on a transparent glass slab of refractive index 1...

Calculus
1.2K views

Find the derivative of the function dx y 5e x 4 11

Calculus
1.2K views

Consider the following function x6 dx 1 x a Determine an appropriate trigonometric substitution Use...

Algebra
1.2K views

s x x 6x 4x 24 Step 2 of 2 Use polynomial division and the...

Accounting
1.2K views

E8.3 (LO 1) Presented below are two independent situations. Instructions a....

Accounting
1.2K views

The production budget cannot be prepared until the direct materfals and direct labor budgets are...

Accounting
1.2K views

Lynch Company manufactures and sells a single product. The following costs were incurred during the...

Accounting
1.2K views

In 2021, Holyoak Inc. offers a coupon for $20 off qualifying purchases of its new...

Finance
1.2K views

Reconciling Retained Earnings Use the following data to reconcile the 2019 retained earnings for Springwerth...