1. Interpreting Financial Data (10 marks total) You have just been appointed President of Holy Shoe Company. You are studying the key past financial statistics and credit rating data of your company for the years 2017 & 2018, as outlined on the next page. You know that you will need to perform a comprehensive analysis of strengths and weaknesses of the entire firm, but would like to begin by focusing on some specific areas. Based only on the numbers on the next page: a) Prepare an IFAS table for the Holy Shoe Company. (6 marks) Internal Factors Weight Rating Weighted Weighted Comments Score b) Describe what each of the Financial and Credit Rating Ratios tells us about the performance of the Holy Shoe Company. (4 marks) Financial & operating information - Holy Shoe Company 2018 2017 : Revenue, Profit & Market Share Data Net Sales Revenues Net Profit Global Market Share (%) Holy Shoe Holy Shoe Holy Shoe 203,815,000 21,559,000 11.9 198,563,000 16,187,000 11.4 64.4 62.5 9.9 62.0 58.9 9.2 7.1 5.8 13.9 7.5 6.7 13.4 Financial & Operating Statistics (Costs & Profits as a % of Net Revenues) Cost of Pairs Sold (%) Holy Shoe Industry Warehouse Expenses (%) Holy Shoe Industry Marketing Expenses (%) Holy Shoe Industry Admin. Expenses (%) Holy Shoe Industry Operating Profit (%) Holy Shoe Industry Net Profit (%) Holy Shoe Industry Days of Inventory Days) Holy Shoe Industry 3.9 4.0 3.1 3.4 19.1 16.7 16.0 13.4 10.3 8.2 9.1 7.1 57 80 71 73 Financial & Credit Rating Ratios Current Ratio 1.31 2.27 2.37 2.12 4.78 4.71 Interest Coverage Ratio 4.43 Holy Shoe Industry Holy Shoe Industry Holy Shoe Industry Holy Shoe Industry Debt to Assets Ratio 0.31 0.36 2.10 1.33 4.37 0.33 0.31 0.77 Default Risk Ratio 1.36