Selected financial data for a recent year for two clothing competitors, Le Chateau Inc. and H&M AB,

Selected financial data for a recent year for two clothing competitors, Le Château Inc. and H&M AB, are presented here (in millions, except share price):

Instructions
(a) For each company, calculate the following values and ratios. Where available, industry averages are included in parentheses.
1. Working capital (n/a)
2. Current ratio (2.3:1)
3. Debt to total assets (21.9%)
4. Earnings per share (n/a)
5. Price-earnings ratio (16.0 times)
(b) Compare the liquidity, solvency, and profitability of the two companies and their industry.
(c) Does the fact that Le Château reports its results in Canadian dollars while H&M uses Swedish krona affect your com-H&M (in SEK, parisons in (b)? Explain.

Transcribed Image Text:

Le Château H&M (in SEK, (in CAD Swedish krona) Current assets Total assets Current liabilities Total liabilities Profit available to common shareholders Share price Weighted average number of common shares 135 236 43 79 30 13.82 24 36,081 54,363 11,090 13,750 16,384 412.30 827