Both a2 Milk Ltd. And Synlait Ltd. operate in the dairy products industry. The following ratios for a2 Milk Ltd. and Synlait Ltd. were calculated for 2020 and 2019: a2 Milk Ltd. Synlait Ltd. 2020 2019 2020 2019 Gross Profit Margin 55.96% 54.84% 15.64% 18.19% Profit Margin 22.29% 22.12% 5.78% 8.03% Return on Assets 44.52% 48.54% 9.33% 12.81% Return on Equity 40.15% 42.83% 13.69% 17.93% Current Ratio 3.69 times 3.15 times 1.00 times 0.76 times Debt ratio 21.97% 21.76% 59.36% 57.20% Based on the above ratios, comment on a2 Milk Ltd.'s and complete the following
Both a2 Milk Ltd. And Synlait Ltd. operate in the dairy products industry. The following ratios for a2 Milk Ltd. and Synlait Ltd. were calculated for 2020 and 2019: a2 Milk Ltd. Synlait Ltd. 2020 2019 2020 2019 Gross Profit Margin 55.96% 54.84% 15.64% 18.19% Profit Margin 22.29% 22.12% 5.78% 8.03% Return on Assets 44.52% 48.54% 9.33% 12.81% Return on Equity 40.15% 42.83% 13.69% 17.93% Current Ratio 3.69 times 3.15 times 1.00 times 0.76 times Debt ratio 21.97% 21.76% 59.36% 57.20% Based on the above ratios, comment on a2 Milk Ltd.'s and complete the following
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
i need the answer quickly
Transcribed Image Text:Question 3
Both a2 Milk Ltd. And Synlait Ltd. operate in the dairy products industry. The following ratios for a2 Milk Ltd. and
Synlait Ltd. were calculated for 2020 and 2019:
a2 Milk Ltd.
Synlait Ltd.
2020
2019
2020
2019
Gross Profit Margin
Profit Margin
55.96%
54.84%
15.64%
18.19%
22.29%
22.12%
5.78%
8.03%
Return on Assets
44.52%
48.54%
9.33%
12.81%
Return on Equity
40.15%
42.83%
13.69%
17.93%
Current Ratio
3.69 times
3.15 times
1.00 times
0.76 times
Debt ratio
21.97%
21.76%
59.36%
57.20%
Based on the above ratios, comment on a2 Milk Ltd.'s and complete the following
i. Profitability in the Income Statement
ii. Profitability to investment
iii. Briefly summaries the profitability of a2 Milk by comparing with Synlait Ltd.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education