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 Profitability in the Income Statement Profitability to investment Briefly summaries the profitability of a2 Milk by comparing with Synlait Ltd.
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 Profitability in the Income Statement Profitability to investment Briefly summaries the profitability of a2 Milk by comparing with Synlait Ltd.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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% |
|
|
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
- Profitability in the Income Statement
- Profitability to investment
- 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 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education