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You know the following. ATO, ITO and FATO are 4, 6, and 3.9 respectively while for...

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Finance

You know the following. ATO, ITO and FATO are 4, 6, and 3.9respectively while for the industry they are 4.4, 19 and 4respectively. The current ratio and quick ratio are 1 and 1.5 forthe firm and 2.3 and 2.0 for the industry respectively. Net profitmargin is 5.2% and 5% for the firm and the industry respectively.The ROE is 2% and 10% respectively. The average collection periodand the average payment period are 10 and 25 days respectively,while for the industry they are 30 and 30 respectively.Evaluate the firm. Step by Step please.

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The turnover ratios like the Asset turnover inventory turnover and fixed asset turnover determines the efficiency with which the assets are used to generate profits and earn revenue The efficiency with which inventory are used to generate revenue    See Answer
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You know the following. ATO, ITO and FATO are 4, 6, and 3.9respectively while for the industry they are 4.4, 19 and 4respectively. The current ratio and quick ratio are 1 and 1.5 forthe firm and 2.3 and 2.0 for the industry respectively. Net profitmargin is 5.2% and 5% for the firm and the industry respectively.The ROE is 2% and 10% respectively. The average collection periodand the average payment period are 10 and 25 days respectively,while for the industry they are 30 and 30 respectively.Evaluate the firm. Step by Step please.

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