n

MNP3701_ASSIGNMENT 5_SEMESTER 2_2023 \begin{tabular}{|c|c|c|c|c|} \hline Return on assets & 10% & Calculate & 12% & Provide an interpretation for Suppliers A, B and C \\ \hline Return on equity & Calculate & 10% & 18% & Provide an interpretation for Suppliers A, B and C \\ \hline DEBT & & & & \\ \hline Debt to equity & 2.5 & Calculate & 1.5 & Provide an interpretation for Suppliers A, B and C \\ \hline Currentdebttoequity & 0.9 & 1.2 & 0.7 & Provide an interpretation for Suppliers A, B and C \\ \hline Interestcoverage & 4 & 2 & 5 & Provide an interpretation for Suppliers A, B and C \\ \hline \end{tabular} 7 MNP3701_ASSIGNMENT 5_SEMESTER 2_2023 ANNEXURE A TASK 3 [28 MARKS] You have been tasked with selecting a supplier to provide the IT infrastructure of the Shoprite X campus project. Follow the two steps outlined below to select the supplier. STEP 1 of TASK 3 [To be completed in Table 2 of the Assessment 5 template] You need to assess the financial health of three prospective suppliers. To achieve this, do the following: 3.1 Calculate and complete the missing financial ratios for Suppliers A, B, and C in "Table 2: Suppliers financial health evaluation sheet" below. Use the provided data in Annexure A to calculate the missing ratios. [Note: You are not required to show the calculations used to arrive at your answers. Simply enter the correct values in the corresponding blank spaces in the table]. (7) 3.2 Analyse the financial ratios of all three suppliers using the retail industry standard benchmarks provided in Annexure A. Based on this analysis, identify which supplier is the most favourable when considering each financial ratio. [Note: An example of the expected analysis is provided in Table 2 of the Assessment 5 template]. (7)