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Applied Economics Assignment

Indus Motor Company


Current ratio: 1.76

Quick ratio: 3.4

Debt ratio: 0:1

Return on assets: 23.5%

Return on equity: 41.67%

Inventory turnover: 11.0

Industrial business ratio

Current ratio: 2.5

Quick ratio: 0.35

Debt ratio: 0.41

Return on assets: 33.5%

Return on equity: 51.67%

Inventory turnover: 7.1

Since the company has lower business ratio than industrial ratios, therefore it is not in a strong market
financial position.

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