Selected information for two companies competing in the catering industry have been presented below.


Account             A Ltd                    B Ltd 
Current assets $55250 $83950
Non-current assets $125000 $149500
Current Liabilities $29300 $11750
Non-current Liabilities $44850 $72500
Equity $106100 $149200
Profit $37500 $26500




  1. Calculate the following ratios for A Ltd and B Ltd:
    1. Current ratio.
    2. Return on Assets (ROA).
    3. Return on Equity (ROE).
  2. From your calculations in part A, explain which entity is in a more favourable position.

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