Answered step by step
Verified Expert Solution
Question
1 Approved Answer
note that: theses tables are on the same row. its a comparison between two companies performance from 2015 to 2020. Based on the analysis in
note that: theses tables are on the same row. its a comparison between two companies performance from 2015 to 2020.
Based on the analysis in above, which company is your preferred choice of investment (note that you can only choose one of the two companies)? Provide sound arguments to support your decision.
if I have to invest in one company which one should I choose?
IX 4 A B D 6 Kathmandu 7 Selected Financial Information from the financial statements year ended 7/31/2020 7/31/2019 7/31/20 8 9 $'000 $'000 $'000 10 11 12 13 14 Selected Statement of Financial Position Information Cash Trade receivables Inventories Total Current Assets Current Liabilities Total Assets Total Liabilities Retained Earnings Shareholders Equity 15 16 17 231,885 73,668 228,793 538,189 236,751 1,573,432 794,230 165,246 779,202 6,230 14,206 122,773 148,173 81,131 594,553 152,491 197,120 442,062 18 19 20 21 22 23 24 25 26 27 28 29 Selected Statement of Financial Performance Information Revenue Income Tax Expense Interest Expense (Finance Costs) Cost of Sales Gross Profit Operating Expenses Profit After Tax 801,524 13,631 23,803 334,493 467,031 345,509 538,855 23,745 2,952 206,362 332,493 234,058 57,633 8,879 30 31 32 33 34 35 Selected Other Financial Information (including cash flow information) Net Cash Provided by Operating Activities Dividends paid Market Price per share as at 31/7 relevant year Weighted Average Number of Ordinary Shares 169,795 27,209 1.07 493,347 61,674 33,883 1.40 359,600 $ B D E F G Kathmandu 7/31/2020 7/31/2019 7/31/2018 7/31/2017 7/31/2016 7/31/2015 $'000 $'000 $'000 $'000 $'000 $'000 3,741 113,270 231,885 73,668 228,793 538,189 236,751 1,573,432 794,230 165,246 779,202 6,230 14,206 122,773 148,173 81,131 594,553 152,491 197,120 442,062 8,146 13,453 111,929 160,784 104,888 614,617 194,235 173,217 420,382 3,537 6,284 89,206 99,027 67,244 439,067 111,967 149,893 327,100 6,891 5,031 95,436 107,358 59,825 449,050 137,367 133,483 311,683 45,700 430,451 117,137 313,314 801,524 13,631 23,803 334,493 467,031 345,509 8,879 538,855 23,745 2,952 206,362 332,493 234,058 57,633 497,437 23,019 1,106 181,961 315,476 225,715 50,532 445,348 16,935 2,058 169,165 276,183 205,353 38,039 425,593 13,804 3,582 159,232 266,361 201,563 33,521 169,795 27,209 1.07 493,347 61,674 33,883 1.40 359,600 75,601 27,208 1.98 211,261 67,273 24,179 1.42 203,587 69,080 16,119 1.16 201,485 $ 1 K L M N Premier Investments 7/31/2020 7/31/2019 7/31/2018 7/31/2017 7/31/2016 7/31/2015 $'000 $'000 $'000 $'000 $'000 $'000 190,255 23,011 14,341 111,814 448,832 30,320 156,590 646,273 515,265 2,202,532 855,084 776,680 1,347,448 171,165 405,238 144,919 1,768,723 419,437 178,618 21,563 159,313 386,790 135,368 1,751,414 406,480 752,328 1,344,934 170,631 23,682 140,755 346,821 143,390 1,736,691 401,018 757,158 1,335,673 283,233 16,461 123,556 436,580 140,053 1,662,883 324,328 732,374 1,338,555 127,367 1,648,803 310,496 751,529 1,349,286 1,338,307 1,216,316 57,446 16,716 474,582 741,734 580,161 137,753 1,270,958 44,935 7,687 484,380 786,578 650,650 106,807 1,182,221 40,327 7,551 443,907 738,314 629,704 83,638 1,092,760 34,009 6,242 403,336 689,424 567208 105,136 1,049,226 39,209 4,912 378,946 670,280 545,812 103,874 133,851 88,468 483,582 112,602 16.76 158,540 138,814 104,483 15.76 158,209 97,837 80,352 13.65 157,436 103,663 68,969 16.22 156,733 $ 17.37 157,890 IX 4 A B D 6 Kathmandu 7 Selected Financial Information from the financial statements year ended 7/31/2020 7/31/2019 7/31/20 8 9 $'000 $'000 $'000 10 11 12 13 14 Selected Statement of Financial Position Information Cash Trade receivables Inventories Total Current Assets Current Liabilities Total Assets Total Liabilities Retained Earnings Shareholders Equity 15 16 17 231,885 73,668 228,793 538,189 236,751 1,573,432 794,230 165,246 779,202 6,230 14,206 122,773 148,173 81,131 594,553 152,491 197,120 442,062 18 19 20 21 22 23 24 25 26 27 28 29 Selected Statement of Financial Performance Information Revenue Income Tax Expense Interest Expense (Finance Costs) Cost of Sales Gross Profit Operating Expenses Profit After Tax 801,524 13,631 23,803 334,493 467,031 345,509 538,855 23,745 2,952 206,362 332,493 234,058 57,633 8,879 30 31 32 33 34 35 Selected Other Financial Information (including cash flow information) Net Cash Provided by Operating Activities Dividends paid Market Price per share as at 31/7 relevant year Weighted Average Number of Ordinary Shares 169,795 27,209 1.07 493,347 61,674 33,883 1.40 359,600 $ B D E F G Kathmandu 7/31/2020 7/31/2019 7/31/2018 7/31/2017 7/31/2016 7/31/2015 $'000 $'000 $'000 $'000 $'000 $'000 3,741 113,270 231,885 73,668 228,793 538,189 236,751 1,573,432 794,230 165,246 779,202 6,230 14,206 122,773 148,173 81,131 594,553 152,491 197,120 442,062 8,146 13,453 111,929 160,784 104,888 614,617 194,235 173,217 420,382 3,537 6,284 89,206 99,027 67,244 439,067 111,967 149,893 327,100 6,891 5,031 95,436 107,358 59,825 449,050 137,367 133,483 311,683 45,700 430,451 117,137 313,314 801,524 13,631 23,803 334,493 467,031 345,509 8,879 538,855 23,745 2,952 206,362 332,493 234,058 57,633 497,437 23,019 1,106 181,961 315,476 225,715 50,532 445,348 16,935 2,058 169,165 276,183 205,353 38,039 425,593 13,804 3,582 159,232 266,361 201,563 33,521 169,795 27,209 1.07 493,347 61,674 33,883 1.40 359,600 75,601 27,208 1.98 211,261 67,273 24,179 1.42 203,587 69,080 16,119 1.16 201,485 $ 1 K L M N Premier Investments 7/31/2020 7/31/2019 7/31/2018 7/31/2017 7/31/2016 7/31/2015 $'000 $'000 $'000 $'000 $'000 $'000 190,255 23,011 14,341 111,814 448,832 30,320 156,590 646,273 515,265 2,202,532 855,084 776,680 1,347,448 171,165 405,238 144,919 1,768,723 419,437 178,618 21,563 159,313 386,790 135,368 1,751,414 406,480 752,328 1,344,934 170,631 23,682 140,755 346,821 143,390 1,736,691 401,018 757,158 1,335,673 283,233 16,461 123,556 436,580 140,053 1,662,883 324,328 732,374 1,338,555 127,367 1,648,803 310,496 751,529 1,349,286 1,338,307 1,216,316 57,446 16,716 474,582 741,734 580,161 137,753 1,270,958 44,935 7,687 484,380 786,578 650,650 106,807 1,182,221 40,327 7,551 443,907 738,314 629,704 83,638 1,092,760 34,009 6,242 403,336 689,424 567208 105,136 1,049,226 39,209 4,912 378,946 670,280 545,812 103,874 133,851 88,468 483,582 112,602 16.76 158,540 138,814 104,483 15.76 158,209 97,837 80,352 13.65 157,436 103,663 68,969 16.22 156,733 $ 17.37 157,890Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started