Evaluation of Ratio

Report on Evaluation of Ratio
Ratios comparison and recommendations
08/May/2019
Tech Solutions

Contents
Executive Summary.......................................................................................................... 2
1) Evaluation and comparison of ratios calculated in Part C......................................................2
I. Profitability Ratios.................................................................................................. 2
(a) Return on equity.............................................................................................. 2
(b) Profit margin ratio............................................................................................ 2
II. Asset Efficiency Ratios............................................................................................ 2
(a) Assets turnover ratio......................................................................................... 2
(b) Times debtors turnover...................................................................................... 3
III. Liquidity Ratios.................................................................................................. 3
(a) Current ratio................................................................................................... 3
(b) Cash Flow ratio............................................................................................... 3
IV. Capital Structure Ratios........................................................................................ 3
(a) Debt to equity ratio........................................................................................... 3
(b) Equity ratio.................................................................................................... 3
2) Limitation of Analysis................................................................................................ 3
3) Conclusion.............................................................................................................. 3
4) Recommendations..................................................................................................... 3
5) References............................................................................................................... 4