If you could also please double check to see if I have calculated the ratios correctly it would be appreciated otherwise just the 100-200 words response would be enough. Thanks
1. In the Excel file that has been provided to you, with the select extracted financial information for JB Hi-Fi Ltd, use appropriate Excel formulas to calculate ratios that provide information about the following: a. Two (2) ratios in relation to the liquidity of the company for the 2019 year. b. Two (2) ratios in relation to the solvency of the company for the 2019 year (note: Free Cash Flow is not an accepted ratio calculation for this assessment piece) C. Two (2) ratios in relation to the profitability of the company for the 2019 year. 2. You are looking for a long term investment which will provide you with a high return. Would you buy shares in JB Hi-Fi Ltd? Discuss your reasons why, using only the liquidity, solvency, and profitability ratios you have calculated as justification. Use only the area provided in the excel worksheet to respond. The word limit is 100 200 words. Selected Comparative Financial Information from the Financial Statements for the year ended 30 June 2019 Selected Statement of Financial Position Information 2019 ($'000) 2018 ($'000) Cash and Cash Equivalents Trade Receivables Inventories Total Current Assets Total Assets Total Current Liabilities Total Liabilities Retained Earnings Shareholders Equity 119.2 236.0 886.7. 1,276.5 2,548.8 927.1 1,504.7 555.6 1,044.1 72.0 204.7 891.1 1,210.5 2,491.7 917.2 1,544.1 463.2 947.6 Selected Statement of Financial Performance Information 2019 ($'000) Revenue (cash and credit sales) Income Tax Expense Interest Expense (Finance Costs) Cost of Sales Gross Profit Operating Expenses Profit After Tax 7,095.3 109.5 14.3 5,568.2 1,527.1 1,155.9 249.8 Selected Other Financial Information (including Cash Flow Information) 2019 ($'000) Net Cash Provided by Operating Activities Dividends paid Weighted Average Number of Ordinary Shares 301.6) 157.4 116.1 Market Price per share ($) as at 30 June 2019 25.66 NAME AND CALCULATE YOUR RATIOS HERE (AS INDICATED BELOW): Liquidity Ratios Current Ratio Current cash debt coverage 1.38 0.33 =B14/B16 =B33/((B16+C16)/2) Solvency Ratios Debt to total assets ratio Cash debt coverage 0.59 0.20 =(B17/815) =B33/((B174C171/2) Profitability Ratios Return on assets Profit margin 0.10 0.04 =B29/((B15+C15)/2) =B29/B23
