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Question

Accounting

Ratio of a company :

RATIO

2019

2020

Industry

Average

Liquidity:

Current Ratio

6

4

5

Acid-test (Quick) Ratio

3.25

1.92

3

Average Collection Period

137

107

90

Persediaan Turnover

1.27

1.36

2.2

Operating profitability:

ROA

10.42%

13.85%

15%

Operating Profit Margin

20.83%

24.83%

20%

Total Asset Turnover

0.5

0.56

0.75

Average Collection Period

137

107

90

Persediaan Turnover

1.27

1.36

2.2

Fixed Asset Turnover

1

1.04

1

Financing:

Debt Ratio

0.33

0.35

0.33

Times Interest Earned

5

6

7

Return on Common Stockholders

Return on Common Equity

7.50%

10.60%

9%

Please show the calculation and analysis of the ratio of solvency ratio of the company in 2020 by comparing with the previous year's performance and industry averages.

Thank you

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