Based only on the given information, answer the following: A. (4 marks) What retailer has the best profitability trends? Provide 2 financial measures to support your answer. B. (4 marks) What retailer has the strongest balance sheet? Provide 2 financial measures to support your answer. C. (4 marks) What retailer has the best liquidity position? Provide 2 financial measures to support your answer. D. (3 marks) If you were a value investor, what company would you choose to invest in? Provide support for your answer. Aritzia - Block Summary Model Roots - Block Summary Model Income Statement 2019A 2020A 2021E 2022E Income Statement 2019A 2020A 2021E 2022E Total Canada Stores 114 114 113 113 Total Canada Stores Total U.S Stores 67 68 69 Total US Stores 7 8 2 2 24 29 34 39 Total Stores 121 122 115 115 Total Stores 91 96 102 108 Total Revenues 329,028 329,865 259,781 291,584 Total Revenues 874,296 980,589 838,886 1,088,253 Comparable Sales Growth (1.2)% (0.3)% (18.7)% 13.3% Comparable Sales Growth 9.8% 7.6% (15.8)% 17.0% Gross Profit 188,490 176,189 149,597 162,355 Gross Profit 342,913 397,686 290,671 437,144 Gross Margin (%) 57.3% 53.4% 57.6% 55.7% Gross Margin (%) 39.2% 40.6% 34.6% 40.2% Adjusted Net Income 20,179 4,018 14,682 9,432 Adjusted Net Income 94,543 97,614 12,468 116,570 Adjusted EPS (diluted) $0.47 $0.10 $0.35 $0.22 Adjusted EPS (diluted) $0.81 $0.87 $0.11 $1.03 Wtd. Avg. FD Shares 0/5 (000s) 42,554.2 42,123.0 42,233.1 42,305.0 Wtd. Avg. FD Shares O/S (000s) 117,358.0 112,128.0 111,138.8 112,903.0 Income Statement 2019A 2020A 2021E 2022E Cash Flow Statement 2019A 2020A Cash Flow From Operations 135,791 203,451 2021E 96,985 2022E Cash Flow From Operations 29,724 31,695 39,866 20,807 159,635 Change in Non-Cash WC (10,360) 8,349 (5,181) (4,966) Change in Non-Cash WC (39,616) 18,625 3,475 (4,339) CFO (after W/C) 19,364 40,044 34,684 15,841 CFO (after W/C) 96,175 222,076 100,461 155,296 Net Capex (37,695) (22,320) (5,299) (11,663) Net Capex (56,425) (45,591) (40,830) (42,500) Free Cash Flow (18,331) 17,724 29,385 4,178 Free Cash Flow 39,750 176,485 59,631 112,796 Income Statement 2019A 2020A 2021E 2022E Balance Sheet 2019A 2020A 2021E 2022E Total Current Assets 64,594 53,677 49,475 69,946 Total Current Assets 235,857 231,376 Total Assets 629,374 1,036,715 258,749 1,056,120 391,833 1,190,638 Total Assets 381,114 440,774 386,759 406,694 Total Current Liabilities 51,627 67,208 42,962 44,470 Total Current Liabilities 90,611 153,843 162,784 180,732 Total Liabilities 166,410 290,268 219,849 231,177 Total Liabilities 255,065 704,650 711,512 729,460 Share Capital 196,853 196,903 197,333 197,333 Share Capital 199,517 219,050 222,710 222,710 Retained Earnings 13,608 (49,688) (33,961) (25,354) Retained Earnings 109,339 56,476 63,265 179,835 Total Shareholders' Equity 214,704 150,506 166,910 175,517 Total Shareholders' Equity 374,309 Total Liabilities and Share Equity 629,374 332,065 1,036,715 344,493 1,056,005 461,063 Total Liabilities and Share Equity 381,114 440,774 386,759 406,694 1,190,523 ND/EBITDA 2.3x 3.7x 2.1x 2.6x