IDG has the following ratios based on its published accounts for the previous year, and also the latest
industry average ratios:IDG Industry
30 2023 average
17% 19%
Profit/sales 4% 5%
Asset turnover 5 4
ratio 3 2
ratio 1.5 1
Gross margin 30% 35%
period 40 days 52 days
payment period 37 days 49 days
turnover 14 18
Gearing
Required:
26% 33%) Comment on the performance of the IDG company in comparison to the industry