Question: Explain the advantages and disadvantages of the ratio analysis you have completed
| Ratio name |
Industry Averages |
NeoZone Ratio |
| Current ratio |
2:1 |
131.91:1 |
| Quick ratio |
1.38:1 |
104.4:1 |
| Inventory turnover rate |
5 times |
2.457 |
| Average days inventory is held |
61 days |
148.78 |
| Gross profit rate |
34% |
62% |
| Net profit rate |
12% |
46% |