Part V - Operating Cycle

Perform a detailed analysis of Ubisoft's operating cycle for the five years ended March 31, 2021.

1. Using the Commonly Used Ratios calculate the Operating Cycle ratios for each of the five years ended March 31, 2021.
2. Discuss the overall trends over the five year period in terms of how the Group has managed its operating cycle. Address how the Group has managed its operating cycle through periods of growth or decline. Also address how the Group's strategy is reflected in its operating cycle, including detailed references to Group information from Ubisoft's financial statements.

Ubisoft Entertainment SA and Subsidiaries Statement of financial position March 31, (In millions of euros) 2021 2020 2019 2018 2017 2016 ASSETS Goodwill 220.7 334.6 290.7 259.5 180.7 106.2 Other intangible assets 1,453.2 1,115.3 882.9 782.4 736.5 647.6 Property, plant and equipment 199.9 174.4 160.0 114.1 106.4 83.9 Lease right-of-use assets 282.1 229.9 0.0 0.0 0.0 0.0 Investments in associates 0.0 0.0 0.0 (0.3) (0.1) 0.0 Non-current financial assets 16.1 13.7 8.7 106.9 5.5 4.3 Deferred tax assets 173.1 169.3 168.4 84.2 88.8 122.2 Non-current assets 2,345.0 2,037.2 1,510.7 1,346.8 1,117.8 964.3 Inventory 23.1 12.4 31.9 20.3 25.4 19.4 Trade receivables 342.7 307.1 476.6 435.6 405.6 419.6 Other receivables 260.6 127.5 180.0 208.8 146.5 101.0 Current financial assets 0.0 0.5 0.2 8.3 1.1 13.8 Current tax assets 45.7 41.0 39.6 38.5 33.0 41.5 Cash management financial assets 239.9 0.0 0.0 0.0 0.0 0.0 Cash and cash equivalents 1,627.7 1,079.2 1,049.8 746.9 852.7 461.4 Current assets 2,539.8 1,567.6 1,778.0 1,458.4 1,464.2 1,056.6 Total assets 4,884.8 3,604.8 3,288.8 2,805.1 2,582.0 2,020.8LIABILITIES Share capital 9.6 9.4 8.7 8.7 8.8 8.7 Premiums 556.0 475.4 335.8 234.1 281.0 215.1 Consolidated reserves 987.1 955.4 475.6 507.1 736.3 701.3 Consolidated earnings 103.1 (125.6) 100.0 139.5 107.8 93.4 Eugity attributable to owners of the parent compar 1,655.7 1,314.6 920.0 889.3 1,133.8 1,018.5 Non-controlling interests 9.3 7.2 0.0 0.0 0.0 0.0 Total equity 1,665.0 1,321.7 920.0 889.3 1,133.8 1,018.5 Provisions 5.0 3.1 2.5 3.1 4.2 8.9 Employee benefit liabilities 21.6 15.8 14.4 10.3 9.1 6.6 Non-current financial liabilities 1,894.9 1,176.2 890.4 933.6 640.7 277.4 Deferred tax liabilities 158.5 109.5 127.9 96.0 72.8 47.6 Other non-current liabilities 34.4 59.6 0.0 0.0 0.0 0.0 Non-current liabilities 2,114.4 1,364.2 1,035.1 1,043.0 726.8 340.5 Short-term borrowings and other financial liabilities 200.0 246.9 453.3 361.5 293.4 228.2 Trade payables 152.0 139.2 188.8 176.6 178.3 206.2 Other liabilities 737.8 517.7 664.6 321.9 219.8 213.8 Current tax liabilities 15.8 15.1 26.9 12.7 29.9 13.5 Current liabilities 1,105.6 918.9 1,333.6 872.8 721.4 661.8 Total liabilities and equity 4,884.8 3,604.8 3,288.8 2,805.1 2,582.0 2,020.8Ubisoft Entertainment SA and Subsidiaries Operating Cycle Ratios For the Y'ear Ended March 31. "Dollars in I millions) "Ise adjusted amounts for ratios (see Adjustments & Cales} 2021 2020 2019 2018 2017 Free Cash Flow Cash Flow from Operations - Capital Expenditures 30.9 (137.9) 223.2 169.9 149.1 Accounts Receivable Average AIR, Net ' 365 189.417 199.148 237.428 218.338 195.747 Turnover (days) Sales 2.223.8 1,594.8 1,645.5 1.731.9 1,453.9 85.2 124.9 128.7 126.1 134.1 Inventory Turnover Average Inventory ' 365 6.479 3.081 3.516 3.326 3.164 (STEP) Cost of Goods Sold 325.7 253.1 323.0 236.8 270.9 19.9 31.9 28.9 28.1 30.1 Gross Operating AR Turnover + Inv Turnover 105.1 156.8 157.6 154.1 164.2 Cycle Accounts Payable Average A/P ' 365 53.144 59,858 66,686 64.769 70,177 Turnover Purchases 336.4 233.6 340.6 291.7 276.9 (End inv + COGS - Beg inv) 158.0 256.2 195.8 222.0 253.5 Deferred Revenue Average Deferred Revenues * 365 114.610 119.775 77.052 14.892 15.093 Turnover Revenues 2.223.8 1,594.8 1,845.5 1,731.9 1,459.9 51.5 75.1 41.8 B.6 10.3 Net Operating Cycle Gross Operating Cycle - Accounts Payable Turnover - (104.4) (174.5) (80.0) (76.5) (99.6) Deferred Revenue Turnover