Reference no: EM132460423

You are the loan of?cer at (115 responsible for determining whether KTC's business is strong enough to be able to repay the loan. To do so. accomplish the following:

Question 1: Calculate the following ratios for 2012 and 2013, compare with the industry averages shown in parentheses, and indicate if the company Is doing better or worse than the industry and whether the performance is improving or deteriorating in 2013 as compared to 2012.

(i) Gross profit margin (50%)

(ii) Operating profit margin (15%)

(iii) Net profit margin (8%)

(iv) Return on assets (10%)

(v) Return on equity (20%)

(vi) Current ratio (1.5)

(vii) Quick ratio (1.0)