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MTY Food Group Inc. is a Canadian franchisor and operator of numerous quick service restaurants operating under 40 brand names such as Thai Express, Mucho

MTY Food Group Inc. is a Canadian franchisor and operator of numerous quick service restaurants operating under 40 brand names such as Thai Express, Mucho Burrito, Sushi Shop, Jugo Juice and Manchu Wok. Its annual report for 2018 included the following statements: image text in transcribed

image text in transcribed

Additional information related to 2016 at year-end is as follows: image text in transcribed

The companys statutory tax rate was 26.7 percent for both fiscal years and its market price per share was $52.24 at November 30, 2017 and $65.58 at November 30, 2018. All sales are on account. Required: For MTY Food Group Inc.s past two years, compute the ratios given below. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

image text in transcribed

2017 $276,083 182,357 2,724 20,178 10,314 1,000 216,573 MTY FOOD GROUP INC. Consolidated Statements of Income For the years ended November 30, (in thousands of Canadian dollars, except per share amounts) 2018 Revenue $353, 303 Expenses Operating expenses 225,560 Depreciation-property, plant, and equipment 2,755 Amortization-intangible assets 24,749 Interest on long-term debt 11,717 Impairment charges on property, plant, and equipment and intangible assets 5,531 270, 312 Other income (charges) Unrealized and realized foreign exchange gain 11 Interest income 649 Gain on disposal of property, plant, and equipment and intangible assets 710 Loss on revaluation of financial liabilities recorded at fair value through profit and loss (1,461) (91) Income before taxes 82,900 Income tax (recovery) expense Current 18,721 Deferred (34,812) (16,091) Net income $ 98,991 Earnings per share Basic 4.07 Diluted 4.06 2,004 439 1,120 (409) 3,154 62,664 9,685 3,125 12,810 $ 49,854 2.32 2.32 2017 (restated) $ 56, 453 34,151 3, 281 1,408 1,163 2,817 5, 461 104,734 3,109 351 13,081 506,970 226,768 $855,013 MTY FOOD GROUP INC. Consolidated Statement of Financial Position At the years ended November 30, (in thousands of Canadian dollars) 2018 Assets Current assets Cash $ 32,304 Accounts receivable 49,168 Inventories 3,574 Income taxes receivable Other assets 692 Loans receivable 2,134 Prepaid expenses and deposit 7,291 95,163 Loans receivable 5,970 Deferred income tax 114 Property, plant, and equipment 18,753 Intangible assets 733, 660 Goodwill 376,647 $1,230, 307 Liabilities and shareholders' equity Liabilities Current liabilities Accounts payable and accrued liabilities $ 68,700 Provisions 90,039 Income taxes payable 24,989 Deferred revenue and deposits 20, 122 Current portion of long-term debt 7,416 211,266 Long-term debt 268, 200 Deferred revenue and deposits 705 Deferred income taxes 119,464 599,635 Shareholders' Equity Equity attributable to owners Capital stock 312,161 Reserves 1,245 Retained earnings 315,985 629,391 Equity attributable to non-controlling interest 1,281 630, 672 $1,230, 307 $ 57,555 75,331 19,273 20,844 4,240 177,243 223,567 1,946 116,931 519,687 114,545 (13,113) 232,192 333,624 1,702 335, 326 $855,013 Shareholders' equity Total assets Property, plant, and equipment Accounts receivable Inventories Accounts payable and accrued liabilities $310,866 852,650 14,087 36,106 3,298 48,808 Ratio 2018 2017 Profitability ratios: Return on equity % % Return on assets % % % % % % % % Financial leverage percentage Gross profit percentage Net profit margin Earnings per share Quality of earnings Asset turnover ratios: per share per share Total asset turnover Fixed asset turnover Receivables turnover Inventory turnover Liquidity ratios: Current ratio Quick ratio Cash ratio Solvency ratios: Times interest earned Cash coverage Debt-to-equity Market ratios: Price/earnings ratio Dividend yield

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