IIn this assignment, you are going to analyze the financial viability of two companies, Dollarama and Lululemon currently listed on the TSX$.$ Then you will make an investment decision and justify your reasoning. Email your instructor before the end of Week $2$ for approval on the two companies you wish to analyze to ensure they are compatible.

The Process

First, choose two public companies that are listed in the TSX$.$ Please avoid banks, financial institutions and resource companies. Ideally, the companies should be in the same industry but they do not have to be$.$

Second, obtain the most recent annual financial statements for each company. You can get this either from the companies$$ websites $($usually under $$Investor Relations$$ or from www$.$sedar.com$).$ Print off the balance sheet and the income statement for each company.

NOTE: At a minimum, you must include a Bibliography that lists your sources. Humber requires you to note these sources in APA style.

Third, calculate $2-3$ ratios $($in each of the five Ratio Categories listed below$),$ for each company and briefly describe the results for each section $(2-3$ sentences for each section$)$:

$($i$)$ Short$-$term Solvency $/$ Liquidity

$($ii$)$ Long$-$term Solvency $/$ Leverage

$($iii$)$ Asset Utilization

$($iv$)$ Profitability

$($v$)$ Market Value

Growth and Profitability

Year $/$ Year revenue growth

Year $/$ Year net profit growth

 

 

Finally, Briefly give your overall impression of each company based on your analysis and choose which one you think would make a better investment option. Explain your answer.