Evaluate the financial performance of the two companies and then determine which is the best as required below? Company X Company Y Item 1.11 1.14 1.20 1.26 2.05 5.49 4.02 4.85 8.97 0.17 0.15 0.20 4.78 urrent ratio uick ratio 0,41 0.42 0.43 0.44 0.76 Net cash from ating(Million) 121 9792 125 165 29 16 28 53 3 t cash from Investing (Million) Net cash from 1015 6 33 28 223 1 Financing (Million) 111 -79 -81-115 -115 -56-17 451 |244 1 246 0.24 0.25 0.22 0.20 0.19 0.36 0.35 0.37 0.35 0.42 0.17 0.18 0.16 0.15 0.15 0.12 0.03 0.12 0.11 0.12 Net cash (Million) 0 354 17 0 4 1 ross profit ma Net profit ma 0.15 0.17 0.19 0.19 0.24 0.03 0.01 0.03 0.04 eturn of Assets eturn of Equity 0.27 0.31 0.34 0.36 0.35 0.04 0.01 0.04 0.05 0.02 EPS Receivables Turnover 5.71 6.16 7.25 8.38 10.629.38 11.48 17.13 23.10 19.3 Inventories Turnover | 2.10 Assets Turnover 16.68 19.73 22.67 20.10 29.37 3.43 0.74 3.24 3.41 1.80 2.40 | 2.70 | 3.00 | 3.80 .301 0.30 | 0.30 0.40 | 0.30 0.90 1.00 1.20 1.401.80 0.20 0.20 0.20 0.30 0.20 0.76 0.75 0.78 0.80 0.81 064 0.65 0.63 0.65 0.58 0.28 0.29 0.23 0.09 ost of sales/ sales0 Liabilities/ Assets 0.45 045 0.46 0.47 0.32 A. In general, which company is better in liquidity and why? B. In general, which company is better in efficiency and why? c. In general, which company is better in profitability and why? o. In general, which company is more risky and why? E. Select at least three problems that each company has faced? F. In general and based in your answers, which company is better financial performance and why?
a. In general, company Y is better in liquidity because, Company Y is having more cash on hand than X. So, it can use that cash in other areas. While Company X will have to struggle in terms of cash.
b. In general, comapny Y is better in Efficiency because, company Y is having lower efficiency ratio as compared to company X. It means, cost of productions of Company Y are lower than Company X.
c. In general, company X is better in Profitability because, Net Profit rates of company X are better than that of company Y. It clearly shows that comapny X is having better profit margin than company Y.
f. In general, financial performance of company X is better than company Y because, though liquidity and efficiency arfe better of company Y, its profitability is much lesser than company X. So, we can say that financial position of company X is better than company Y.
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