The following ratios for The A2 Milk Limited and Synlait Limited were calculated for 2020 and 2019: A2 Milk Ltd. Synlait Ltd. 2020 2019 2020 2019 Return on Assets 44.52% 48.54% 9.33% 12.81% Return on Equity 40.15% 42.83% 13.69% 17.93% Current Ratio 3.69 times 3.15 times 1.00 times 0.76 times Days in Inventory 61 days 54 days 72 days 68 days Debt ratio 21.97% 21.76% 59.36% 57.20% Based on the above ratios, comment on A2 Milk Ltd’s short term and long term financial risk

The following ratios for The A2 Milk Limited and Synlait Limited were calculated for 2020 and 2019: A2 Milk Ltd. Synlait Ltd. 2020 2019 2020 2019 Return on Assets 44.52% 48.54% 9.33% 12.81% Return on Equity 40.15% 42.83% 13.69% 17.93% Current Ratio 3.69 times 3.15 times 1.00 times 0.76 times Days in Inventory 61 days 54 days 72 days 68 days Debt ratio 21.97% 21.76% 59.36% 57.20% Based on the above ratios, comment on A2 Milk Ltd’s short term and long term financial risk

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 54CE

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Question : Calculate the following ratios for Avartar Sdn. Bhd. for years ended 31 March 2019 and 31 March2018 : 11) Inventory turnover times (using closing inventories); 12) Inventory turnover days (using closing inventories); 13) Receivables collection period; 14) Payables payment period (using cost of sales); 15) Earnings per share; Provide the formulas used for calculating the ratios and all workings should be shown clearly. Answer probably please!!!!!
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Calculate the following ratios for Avartar Sdn. Bhd. for years ended 31 March 2019 and 31 March2018 11) Inventory turnover times (using closing inventories); 12) Inventory turnover days (using closing inventories); 13) Receivables collection period; 14) Payables payment period (using cost of sales); 15) Earnings per share; Provide the formulas used for calculating the ratios and all workings should be shown clearly.
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	A2 Milk Ltd.	Synlait Ltd.
	2020	2019	2020	2019
Return on Assets	44.52%	48.54%	9.33%	12.81%
Return on Equity	40.15%	42.83%	13.69%	17.93%
Current Ratio	3.69 times	3.15 times	1.00 times	0.76 times
Days in Inventory	61 days	54 days	72 days	68 days
Debt ratio	21.97%	21.76%	59.36%	57.20%