Average collection period and average payment period

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You know the following. ATO, ITO and FATO are 2, 6, and 2.5 respectively while for the industry they are 4.4, 19 and 4 respectively. The current ratio and quick ratio are 1 and 1.5 for the firm and 2.3 and 2.0 for the industry respectively. Net profit margin is 1% and 5% respectively. The ROE is 2% and 10% respectively. The average collection period and the average payment period are 10 and 45 days respectively while for the industry they are 30 and 30 respectively.

Evaluate the firm.

Reference no: EM13934853

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