Compare between the performance of Lovisa and its main compititors like (Michaels Hilss, Premier Investment Limited, Accent Group, Cettire Ltd) in terms of key performance indicators (KPIs), market share, growth rate, and any other imprtant measure.

Can you revise and improve this part of my report?

"DUPONT ANALYSIS

Over the five-year period from June 2018 to June 2022, Lovisa experienced significant fluctuations in its return on equity (ROE). The major components influencing ROE - net profit margin, asset turnover, and the equity multiplier - have shown considerable variation.

In June 2018, Lovisa demonstrated high operational efficiency and profitability with an ROE of 97.93%. However, by June 2020, ROE had fallen drastically to 20.03%, largely due to a drop in net profit margin and asset turnover.

Lovisa's ROE rebounded to 47.71% in June 2021, with slight improvements in net profit margin and maintained asset turnover. The increasing trend in ROE continued through June 2022, reaching 106.12%, driven by significant improvements in net profit margin and a slight uptick in asset turnover.

Throughout this period, Lovisa's equity multiplier steadily increased, indicating a growing reliance on debt financing. While this has contributed positively to the ROE, it presents an increased level of financial risk which needs careful management.

CROSS-SECTIONAL ANALYSIS

In the current competitive landscape of the retail industry, it is essential for businesses to constantly monitor and evaluate their performance relative to their peers. This section aims to present a comparative analysis of Lovisa and three of its industry competitorsMichael Hill International Ltd, Premier Investments Ltd, and Accent Group Ltd. The focus will be on various key financial metrics such as gross margin, net profit margin, asset turnover, equity multiplier, return on assets (ROA), return on equity (ROE), and certain liquidity and efficiency ratios. The interpretation of these metrics will help elucidate each company's financial performance, operational efficiency, and risk profile, providing an extensive understanding of their current market position.

When comparing Lovisa with its competitorsMichael Hill, Premier Investments, and Accent Groupwe can observe several key aspects. Lovisa leads with the highest gross margin at 36.12%, demonstrating a superior ability to generate sales revenue from direct product costs. In comparison, the gross margins for Michael Hill, Premier Investments, and Accent Group are 29.81%, 30.29%, and 20.88%, respectively.

Premier Investments takes the lead in terms of net profit margin with 19.03%, suggesting it is the most efficient at converting its revenue into actual profit. Lovisa follows next with a net profit margin of 12.73%. Michael Hill and Accent Group trail with lower net profit margins of 7.85% and 2.81% respectively, indicating less efficiency in turning revenue into net income.

In terms of asset turnover, a measure of how effectively a company uses its assets to generate sales, Lovisa outperforms the others with a turnover ratio of 1.37. This implies that Lovisa generates $1.37 of sales for every dollar of assets it owns. The asset turnover ratios for Michael Hill, Premier Investments, and Accent Group are 1.19, 0.65, and 0.96, respectively.

Considering the equity multiplier, which reflects a company's financial leverage, Lovisa's ratio of 6.11 is considerably higher than its competitors', implying that Lovisa has relied more on debt to finance its assets.

Looking at return on assets (ROA) and return on equity (ROE), Lovisa's outstanding 17.38% ROA and 106.12% ROE suggest it is significantly more efficient at using its assets and equity to generate earnings than its competitors.

In terms of inventory turnover, Lovisa leads the group with a ratio of 6.94, showing it is the most effective at selling its inventory. Regarding receivable turnover, Premier Investments leads with a ratio of 146.08, indicating superior credit and collection efficiency.

With regards to liquidity, as indicated by the current ratio, Lovisa has the lowest ratio of 0.89, suggesting potential challenges in meeting short-term obligations. The other companies have healthier ratios above 1.

When examining the quick ratio, which provides a measure of a company's ability to meet its short-term liabilities with its most liquid assets, Lovisa again ranks lower with a quick ratio of 0.51, compared to Michael Hill's 0.83, Premier Investments' 1.25, and Accent Group's 0.43. Lovisa's lower quick ratio may indicate a higher risk compared to Michael Hill and Premier Investments in terms of meeting its short-term liabilities.

Lovisa has a LT Debt Commitment ratio of 2.61, meaning it uses 2.61 units of long-term debt for every unit of equity. Similarly, Premier Investments has a much higher LT Debt Commitment ratio of 8.94, showing a significant reliance on debt financing.

On the other hand, Michael Hill and Accent Group show less financial risk associated with long-term debt. Michael Hill has a low LT Debt Commitment ratio of 0.47, indicating less reliance on long-term debt as a financing source. Accent Group's LT Debt Commitment ratio of 1.04 suggests a balanced approach to financing, using approximately equal amounts of equity and long-term debt. In summary, Michael Hill and Accent Group are less leveraged than Lovisa and Premier Investments, potentially reducing their financial risk exposure.

In summary, Lovisa has shown strong resilience and adaptability in the past five years, as evidenced by the significant rebound in its ROE from a low in 2020, driven by improvements in net profit margin and asset turnover. However, its increased reliance on debt poses a financial risk that requires careful management. Comparatively, Lovisa demonstrates a superior gross margin and asset turnover among its peers, which reflects its efficient operations. Nevertheless, its liquidity ratios and long-term debt commitment indicate potential challenges in meeting financial obligations, making it imperative for Lovisa to balance its growth strategy with financial stability. Its competitors, while exhibiting strengths in areas such as profit conversion and credit management, also have their unique challenges that require strategic focus. Each company's success will depend on their ability to leverage their strengths and address their weaknesses in the competitive retail industry."