What do tell about the efficiency management of xyz ltd

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Financial Ratios of XYZ Ltd.

 

2018

2019

2020

Current Ratio

1.5

1.4

1.2

Quick Ratio

0.9

0.8

0.8

Inventory Turnover Ratio

2

2.2

1.78

Creditor Turnover(days)

37

39

64

Debtor Turnover(days)

73

74

86

Gross profit

27%

24%

22%

Net Profit

7%

6%

6%

Gearing ratio

8%

7%

7%

Problem 1: A lending officer is provided with the following Table about the financial ratio of a business borrower XYZ Ltd. XYZ Ltd. is a paper producer and has a policy of giving 30 days' credit. What do these tell us about the efficiency management of XYZ Ltd?

Reference no: EM132630830

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