ACC506-Management

Ryan Reed is eager to understand more about how his business has performed this year. His research reveals that some interstate competitors, operating a similar business model, are reporting financial ratios in the following ranges:

Current ratio: 1.5 - 3.0 times

Quick Ratio: 1.0 – 1.5 times

Gross Profit Percentage: 38-43%

1.How does R Reed Co Pty Ltd compare? 

2.Do you think the profit or loss for the company is reasonable in the circumstances and explain why? 

3.What recommendations would you make for Ryan Reed to improve his business performance in these areas?