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Foschini Holdings : Group statements Statement of financial position Assets 2007 2006 (R million) (R million) Property, plant and equipment (PPE) at carrying value 1
Foschini Holdings : Group statements
| Statement of financial position | ||
| Assets | 2007 | 2006 |
| (R million) | (R million) | |
| Property, plant and equipment (PPE) at carrying value | 1 936.9 | 1 810.5 |
| Goodwill | ||
| Other intangible assets | 350.5 | 274.3 |
| Investment in associates | 35.5 | 25.0 |
| Deferred tax assets | 230.0 | 294.0 |
| Other long-term assets | 883.5 | 389.3 |
| Non-current assets | 3 436.4 | 2 793.1 |
| Inventories | 1 722.7 | 1 371.4 |
| Trade and other receivables | 745.2 | 697.4 |
| Short-term financial assets | 5.8 | 30.0 |
| Cash and cash equivalents | 2 391.1 | 825.6 |
| Other short-term assets | 3.9 | 3 337.2 |
| Current assets | 4 868.7 | 6 261.6 |
| Total assets | 8 305.1 | 9 054.7 |
| Equity and liabilities | ||
| Share capital | 1.1 | 1.1 |
| Reserves | 190.1 | (356.5) |
| Retained earnings | 2 833.5 | 3 881.1 |
| Ordinary shareholders' equity | 3 024.7 | 3 525.7 |
| Non-controlling interest | 47.2 | 52.1 |
| Total equity | 3 071.9 | 3 577.8 |
| Long-term debt | 1 531.6 | 1 503.7 |
| Post-retirement benefit obligation | 272.1 | 251.2 |
| Deferred tax liabilities | 65.3 | 66.9 |
| Other | 472.5 | 450.0 |
| Non-current liabilities | 2 341.5 | 2 271.8 |
| Trade and other payables | 2 372.8 | 1 990.7 |
| Tax payable | 111.7 | 53.5 |
| Short-term debt | 15.2 | 920.6 |
| Other current liabilities | 392.0 | 240.3 |
| Current liabilities | 2 891.7 | 3 205.1 |
| Total equity and liabilities | 8305.1 | 9 054.7 |
| Statement of comprehensive income | ||
| 2007 | 2006 | |
| (R million) | (R million) | |
| Turnover | 21 175.0 | 20 064.9 |
| Cost of sales and services rendered | (14 501.1) | (13 798.3) |
| Gross profit | 6 673.9 | 6 266.6 |
| Other operating income | 747.3 | 1 687.6 |
| Operating expenses | (5 783.7) | (5 955.0) |
| Operating profit | 1 637.5 | 1 999.2 |
| Investment income | 69.8 | 1.0 |
| Finance cost | (281.2) | (502.5) |
| Other income | 380.0 | 0.0 |
| Profit before tax | 1 806.1 | 1 497.7 |
| Tax | (546.3) | (552.5) |
| Profit after tax | 1 259.8 | 945.2 |
| Minority interest | (12.1) | (8.5) |
| Preference share dividends | (17.3) | (11.1) |
| Attributable earnings | 1 230.4 | 925.6 |
| Ordinary dividends | (179.0) | (79.0) |
| Retained earnings (for the year) | 1 051.4 | 846.6 |
| Industry Benchmarks 2007 | |
| Net Profit Margin | 6.20% |
| Return on Assets (ROA) | 11.50% |
| Return on Ordinary Shareholders' Equity (ROSHE) | 25.00% |
| Current ratio | 2 times |
| Debt-to-Assets ratio | 0.65 times |
| Inventory turnover time | 36 days |
NB: In respect of average assets, average inventories and average ordinary shareholders' equity for 2006, use the 2006 closing balances as the average values.
1. Calculate the debt-to-assets ratio for 2006 and 2007 and interpret your results.
2. Calculate the inventory turnover time ratio for 2006 and 2007 and interpret your results.
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