Some of the key ratios for Palmerston plc and its maincompetitor Glebe plc are...

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Accounting

Some of the key ratios for Palmerston plc and its maincompetitor Glebe plc are as follows.
Palmerston Glebe
Gearing 70% 10%
ROCE 25% 15%
Gross profit 40% 50%
Receivables’ collection 5 days 35 days
Payables’ payment 30 days 30 days
Explain why analysts might consider each of the ratios above tobe useful. Use the ratios above to assess the financial performanceand financial position of the two companies.

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In: AccountingSome of the key ratios for Palmerston plc and its maincompetitor Glebe plc are as...Some of the key ratios for Palmerston plc and its maincompetitor Glebe plc are as follows.Palmerston GlebeGearing 70% 10%ROCE 25% 15%Gross profit 40% 50%Receivables’ collection 5 days 35 daysPayables’ payment 30 days 30 daysExplain why analysts might consider each of the ratios above tobe useful. Use the ratios above to assess the financial performanceand financial position of the two companies.