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    rose333's Avatar
    rose333 Posts: 2, Reputation: 1
    New Member
     
    #1

    Oct 4, 2008, 06:33 AM
    Choosing between 2 companies
    Hi can anyone please help me with the following question?

    We have the following information for Company X and Company Y for the years-ended 28 February 2007 and 2008.

    Company X Company Y
    2008 2007 2008 2007

    Return on Shareholders Equity 31% 35% 25% 20%

    Net Profit before tax (R m) R 5.5 R 6.6 R 5.2 R 4.6
    Current Ratio 3.1:1 3.2:1 2.2:1 1.68:1

    Acid-test Ratio 0.75:1 1.5:1 1.5:1 0.78:1

    Debtors Receivable Period 45 days 60 days 30 days 40 days

    Creditors Payment Period 30 days 30 days 40 days 45 days

    Stock Turnover Rate 4 times 6 times 9 times 6 times

    Gearing Ratio 60 % 40 % 20% 25%


    Prepare a report to be presented after an analysis and interpretation of the above information and which company would you recommend, giving reasons for your choice.

    Thank you,

    Miss Rose
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #2

    Oct 4, 2008, 06:35 AM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help

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