You have received $1,000,000 from an insurance policy that matured. You would like to invest some of that money in either Sagicor investments or Accesss limited- two companies that you believe are doing well financially. You decided to analyze the financial statements of the companies to help you decide which one is performing better. You discovered the following Sagicor Access Current ratio 3:1 2:3:1 Quick ratio 1:5:1 1:1:2 Debtor collection period 35 days 30 days Creditors payment period 40 days 25 days Inventory turnover 8 times 9 times Net income percentage 15% 11% Prepare a report comparing the performance of the companies and determine which one is better to invest.
You have received $1,000,000 from an insurance policy that matured. You would like to invest some of that money in either Sagicor investments or Accesss limited- two companies that you believe are doing well financially. You decided to analyze the financial statements of the companies to help you decide which one is performing better. You discovered the following
Sagicor Access
Quick ratio 1:5:1 1:1:2
Debtor collection period 35 days 30 days
Creditors payment period 40 days 25 days
Inventory turnover 8 times 9 times
Net income percentage 15% 11%
Prepare a report comparing the performance of the companies and determine which one is better to invest.
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