The Geox Group creates, produces, promotes, and distributes Geox-brand footwear and apparel. worldwide, through a network of traditional company-owned retail stores and franchised stores. The main feature of its products is the use of innovative and technological solutions that can guarantee the ability to breathe and to remain waterproof at the same time. Its product lines include casual and dress shoes for men, women, and children as well as jackets and coats. The following information was reported in a recent annual report.

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1. For Geox's past two years, compute the ratios discussed in this chapter. If there is not sufficient information, describe what is missing and explain what you would do.
2. Assume that you work in the loan department of City Bank, and you are evaluating an application from Geox for a two-year loan of \(€ 200\) million to purchase the shares of another competing company. What specific ratios would you consider in your evaluation, and would you lend Geox the requested amount?

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GEOX CONSOLIDATED INCOME STATEMENT (Thousands of Euro) Net sales Notes 3 2009 2008 (*) 865,010 892,513 Cost of sales (426.957) (424,481) Gross profil 438,053 468,052 Selling and distribution costs (42.409) (43,248) General and administrative expenses 4 (214.731) (185,442) Advertising and promotion (46,216) (66,061) Specia! items Net asset impairment EBIT Net interest 753 Co (5.306) (12,363) (1,955) 117,028 171,346 8 (4.154) (4,297) PBT Income tax 112,874 167,049 9 (46,168) (48,875) Net income 66,706 118,174 Earnings per share (Euro) Diluted earnings per share [Euro] 11 10 0.26 0.46 10 0.26 0.45 Restated in compliance with AS 38.