Business Administration

Q.NO.7 “Financial Analysis of ABC Company: Key Ratios and Interpretations”.

Here are the financial ratios and their interpretations for ABC Company:

(i) Current Ratio

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(ii) Quick Ratio

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(iii) Average Collection Period

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(iv) Time Interest Earned

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(v) Inventory Turnover

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Summary of Results

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Overall, ABC Company demonstrates solid liquidity, effective inventory management, and strong profitability, positioning it well for future operations. ​

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