3. Liquidity

You are provided with data for YetAnotherCompany ltd for the fiscal years 2014 and 2015. You are interested in assessing the short and long-term liquidity of the company. In addition, you know that the Cash Flow from Operations (CFO) amounts to 680 in 2014 and 702.2 in 2015.

Q1: Assess short-term liquidity risk by computing liquidity cycle, current ratio, quick ratio, and CFO to short-term debt ratio.

Q2: Assess long-term by computing following key ratios: financial leverage, solvency ratio, interest coverage ratio, and CFO to debt ratio.

company. In addition. to 680 in 2014 and 702.2 in 2015. 2015 950.0 -534.2 415.8 -140 -120.1 -10 145.7 .55 Income Statement: Revenue Cost of sales Gross profit Staff costs Other administrative costs Other operating income EBITDA Depreciation and amortization 2014 890.0 -501.8 388.2 130 -123.3 -10 124.9 -50 90.7 -7 83.7 -25.11 58.6 74.9 EBIT Net financial expenses Income before tax Tax Income after tax -5 69.9 -20.97 48.9 Balance Sheet: Non-current assets Property, plant, and equipment Intangible assets Financial assets Other receivable 2014 257.6 2015 268.7 726.0 0.2 51.8 1 035.6 729.2 0.3 51.8 1 050.0 Current assets Inventory Trade and other receivables Derivative financial instrumnets Cash and short term deposits 140.6 53.2 20.4 126.3 72.2 16.4 161.1 206.3 Total assets375.3 1 410.9 421.2 1 471.2