a) The following ratios have been extracted from an analysis of the accounts of three companies – North, South and East:   Required: Comment on the respective performance of each of the three companies.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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(a) The following ratios have been extracted from an analysis of the accounts of three companies – North, South and East:

 

Required: Comment on the respective performance of each of the three companies.

(b) ‘The consolidation of financial statements hides rather than provides information.’ Discuss.

 

North
South
East
Profit/Sales x 100
5%
4%
3%
Asset turnover
5 times
3 times
4 times
Financial leverage
2
4
5
Transcribed Image Text:North South East Profit/Sales x 100 5% 4% 3% Asset turnover 5 times 3 times 4 times Financial leverage 2 4 5
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