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Posted on Jul 25, 2024

Please help calculating the ratios & show the workings. Refer to the financial statements of METRO Inc. given in Appendix A. Assume a market price

Please help calculating the ratios & show the workings. image text in transcribed

Refer to the financial statements of METRO Inc. given in Appendix A. Assume a market price of $40 per share. Required: Compute the ratios that will help you evaluate the company's operations for fiscal year 2018. (Round intermediate calculations and final answers to 2 decimal places.) % % % % Ratio Profitability ratios: Return on equity Return on assets Financial leverage percentage Gross profit percentage Net profit margin Basic earnings per share Quality of earnings Asset turnover ratios: 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 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 18 / 83 75% metro Net earnings adjustments) OS Change (%) Fiscal years 2018 2017 52 weeks 53 weeks Fully Fully diuted Millions of diluted EPS (Millions of EPS dollars) (Dollars) dollars) (Dollars) 1,718.5 7.16 808.4 2.57 Net earings 182.5 Fully diluted EPS 178.6 23.0 22.7 8.4 11.0 Net earnings Pharmacy network closure and restructuring expenses, after taxes Business acquisition-related expenses, after taxes Distribution network modernization project expenses, after taxes Amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition, after taxes Income on business acquisition-related short- term investments and security deposits. after taxes Interest on notes issued in connection with the business acquisition, after taxes Financial costs on the balance payable for the buyout of minority interests, after taxes Share of an associate's earnings, after taxes Gain on the disposal of the majority of the investment in an associate, after taxes Gain on revaluation and disposal of an investment at fair value, after taxes (U Adjusted net earnings (15.6) 14.0 1.3 (60.2) (968.1) (209.3) 605.9 2.52 548.2 2.31 10.5 9.1 Adjusted net earnings based on 52 weeks in 2017 605.9 2.52 536.3 2.26 13.0 11.5 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 16 / 83 75% LA the Jean Coutu Group, totalled $959.9 million, or 7.3% of sales, up 1.1% compared with $949.1 million or 7.3% of sales , % in 2017. excluding the 53 week. Operating income before depreciation and amortization and associate's earnings adjustments (012) Fiscal years 2018 52 weeks Sales 2017 53 weeks Sales OI OI 1,011.1 14,383.4 7.0 986.4 13.175.3 7.3 >> (Mwons of dollars, unless otherwise indicated) Operating income before depreciation and amortization and associate's eamings Pharmacy network closure and restructuring expenses Business acquisition-related expenses Distribution network modernization project expenses Adjusted operating income before depreciation and amortization and associate's earnings 31.4 28.7 11.4 1,082.6 14,383.4 7.5 986.4 13.175.3 7.3 122.7 1,157.7 Jean Coutu Group operating income before depreciation and amortization Adjusted operating income before depreciation and amortization and associate's earnings excluding the Jean Coutu Group 959.9 13,225.7 7.3 986.4 13.175.3 7.3 Adjusted operating income before depreciation and amortization and associate's earnings excluding the Jean Coutu Group, based on 52 weeks in 2017 959.9 13,225.7 7.3 949.1 12.916.9 7.3 See table on "Net eamings adjustments and section on "Non-IFRS measurements" See table on Operating income before depreciation and amortization and associate's eamings adjustments and section on "Non-IFRS measurements See section on "Forward-looking Information - 16 - metro Gross margins on sales for fiscal 2018 and 2017 were 19.7%. 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 41 / 83 75% metro Consolidated statements of income Years ended September 29, 2018 and September 30, 2017 (Millions of dollars, except for net earnings per share) 2018 (52 weeks) 2017 (63 weeks 13,175.3 (12.208.9) 14,383.4 (13,329.5) (31.4) (11.4) Sales (notes 6 and 26) Cost of sales and operating expenses (notes 6 and 26) Pharmacy network closure and restructuring expenses (notes 6 and 18) Distribution network modernization project expenses (notes 6 and 18) Operating income before depreciation and amortization and associate's earnings Depreciation and amortization (note 6) Financial costs, net (note 6) Share of an associate's earnings (notes 6 and 10) Gain on disposal of the majority of the investment in an associate (notes 6 and 10) Gain on revaluation and disposal of an investment at fair value (notes 6 and 10) Earnings before income taxes Income taxes (note 7) Net earnings 1,011.1 (233.5) (80.2) 30.8 1,107.4 966.4 (194.2) (63.9) 93.5 241.1 2,076.7 (358.2) 1,718.5 801.8 (103.4) 608.4 Attributable to: Equity holders of the parent Non-controlling interests 1,716.5 2.0 1,718.5 591.7 16.7 608.4 Net earnings per share (Dollars) (notes 8 and 21) Basic Fully diluted 7.20 2.59 2.57 7.16 See accompanying notes 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 42 / 83 75% metro Consolidated statements of comprehensive income Years ended September 29, 2018 and September 30, 2017 (Millions of dollars) 2018 (52 weeks 2017 (63 weeks 1,718.5 608.4 >> Net eamings Other comprehensive income Items that will not be reclassified to net earnings Changes in defined benefit plans Actuarial gains Asset ceiling effect Minimum funding requirement Share of an associate's other comprehensive income Corresponding income taxes 37.2 (2.1) (0.2) 108.3 (8.1) 0.7 (0.9) (20.6) 73.4 (9.2) 25.7 22.8 Items that will be reclassified later to net earnings Fair value revaluation of investment (note 10) Reclassification of the change in investment at fair value to net earnings following the disposal of a portion of the investment (note 10) Reclassification of shares of an associate's other comprehensive income to net earnings (note 10) Corresponding income taxes (17.1) (3.9) (0.4) 1.4 27.1 1,745.6 (1.4) 0.2 (1.2) 72.2 Comprehensive income 680.6 Attributable to: Equity holders of the parent Non-controlling interests 1,743.6 2.0 1,745.6 863.9 18.7 680.6 See accompanying notes 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 43 / 83 75% Consolidated statements of financial position As at September 29, 2018 and September 30, 2017 Millions of dollars) 2018 2017 ASSETS Current assets Cash and cash equivalents Accounts receivable (notes 15 and 26) Inventories (note ) Prepaid expenses Current taxes 226.9 538.1 1,099.1 32.1 20.6 1,916.8 148.9 313.7 856.6 19.0 18.1 1,356.3 >> Non-current assets Investment in an associate (note 10) Fixed assets (note 11) Investment properties (note 12) Intangible assets (note 13) Goodwill note 14) Deferred taxes (note 7) Defined benefit assets (note 23) Investment at fair value (note 10) Other assets (note 15) 2,523.4 46.1 2.914.4 3,302.2 4.5 55.1 66.9 92.8 10,9222 475.9 1,761.5 15.0 389.1 1,973.8 1.9 39.3 37.9 6,050.7 LIABILITIES AND EQUITY Current liabilities Bank loans (note 16) Accounts payable (notes 17 and 26) Current taxes Provisions (note 18) Current portion of debt (note 19) Non-controlling interests (note 28) 0.1 1,358 5 254.8 8.0 13.3 1.1 1,038.1 8.8 2.7 12.9 224.3 1,285.9 1,634.7 Non-current liabilities Debt (note 10) Defined benefit liabilities (note 23) Provisions (note 18) Deferred taxes (note 7) Other liabilities (note 20) ) Non-controlling interests (note 28) 2,630.4 81.3 22.3 846.5 11.7 39.3 5.266.2 1.441.6 92.7 2.0 255.7 12.3 36.6 3,126.8 Equity Attributable to equity holders of the parent Attributable to non-controlling interests 5.642.8 13.2 5,656.0 10.922.2 2.911.1 12.8 2,923.9 6,050.7 Commitments and contingencies notes 24 and 25) Event after the reporting period (note 29) 1 Refer to the financial statements of METRO Inc. given in Appendix A. Assume a market price of $40 per share. Required: Compute the ratios that will help you evaluate the company's operations for fiscal year 2018. (Round intermediate calculations and final answers to 2 decimal places.) % % % % Ratio Profitability ratios: Return on equity Return on assets Financial leverage percentage Gross profit percentage Net profit margin Basic earnings per share Quality of earnings Asset turnover ratios: 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 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 18 / 83 75% metro Net earnings adjustments) OS Change (%) Fiscal years 2018 2017 52 weeks 53 weeks Fully Fully diuted Millions of diluted EPS (Millions of EPS dollars) (Dollars) dollars) (Dollars) 1,718.5 7.16 808.4 2.57 Net earings 182.5 Fully diluted EPS 178.6 23.0 22.7 8.4 11.0 Net earnings Pharmacy network closure and restructuring expenses, after taxes Business acquisition-related expenses, after taxes Distribution network modernization project expenses, after taxes Amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition, after taxes Income on business acquisition-related short- term investments and security deposits. after taxes Interest on notes issued in connection with the business acquisition, after taxes Financial costs on the balance payable for the buyout of minority interests, after taxes Share of an associate's earnings, after taxes Gain on the disposal of the majority of the investment in an associate, after taxes Gain on revaluation and disposal of an investment at fair value, after taxes (U Adjusted net earnings (15.6) 14.0 1.3 (60.2) (968.1) (209.3) 605.9 2.52 548.2 2.31 10.5 9.1 Adjusted net earnings based on 52 weeks in 2017 605.9 2.52 536.3 2.26 13.0 11.5 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 16 / 83 75% LA the Jean Coutu Group, totalled $959.9 million, or 7.3% of sales, up 1.1% compared with $949.1 million or 7.3% of sales , % in 2017. excluding the 53 week. Operating income before depreciation and amortization and associate's earnings adjustments (012) Fiscal years 2018 52 weeks Sales 2017 53 weeks Sales OI OI 1,011.1 14,383.4 7.0 986.4 13.175.3 7.3 >> (Mwons of dollars, unless otherwise indicated) Operating income before depreciation and amortization and associate's eamings Pharmacy network closure and restructuring expenses Business acquisition-related expenses Distribution network modernization project expenses Adjusted operating income before depreciation and amortization and associate's earnings 31.4 28.7 11.4 1,082.6 14,383.4 7.5 986.4 13.175.3 7.3 122.7 1,157.7 Jean Coutu Group operating income before depreciation and amortization Adjusted operating income before depreciation and amortization and associate's earnings excluding the Jean Coutu Group 959.9 13,225.7 7.3 986.4 13.175.3 7.3 Adjusted operating income before depreciation and amortization and associate's earnings excluding the Jean Coutu Group, based on 52 weeks in 2017 959.9 13,225.7 7.3 949.1 12.916.9 7.3 See table on "Net eamings adjustments and section on "Non-IFRS measurements" See table on Operating income before depreciation and amortization and associate's eamings adjustments and section on "Non-IFRS measurements See section on "Forward-looking Information - 16 - metro Gross margins on sales for fiscal 2018 and 2017 were 19.7%. 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 41 / 83 75% metro Consolidated statements of income Years ended September 29, 2018 and September 30, 2017 (Millions of dollars, except for net earnings per share) 2018 (52 weeks) 2017 (63 weeks 13,175.3 (12.208.9) 14,383.4 (13,329.5) (31.4) (11.4) Sales (notes 6 and 26) Cost of sales and operating expenses (notes 6 and 26) Pharmacy network closure and restructuring expenses (notes 6 and 18) Distribution network modernization project expenses (notes 6 and 18) Operating income before depreciation and amortization and associate's earnings Depreciation and amortization (note 6) Financial costs, net (note 6) Share of an associate's earnings (notes 6 and 10) Gain on disposal of the majority of the investment in an associate (notes 6 and 10) Gain on revaluation and disposal of an investment at fair value (notes 6 and 10) Earnings before income taxes Income taxes (note 7) Net earnings 1,011.1 (233.5) (80.2) 30.8 1,107.4 966.4 (194.2) (63.9) 93.5 241.1 2,076.7 (358.2) 1,718.5 801.8 (103.4) 608.4 Attributable to: Equity holders of the parent Non-controlling interests 1,716.5 2.0 1,718.5 591.7 16.7 608.4 Net earnings per share (Dollars) (notes 8 and 21) Basic Fully diluted 7.20 2.59 2.57 7.16 See accompanying notes 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 42 / 83 75% metro Consolidated statements of comprehensive income Years ended September 29, 2018 and September 30, 2017 (Millions of dollars) 2018 (52 weeks 2017 (63 weeks 1,718.5 608.4 >> Net eamings Other comprehensive income Items that will not be reclassified to net earnings Changes in defined benefit plans Actuarial gains Asset ceiling effect Minimum funding requirement Share of an associate's other comprehensive income Corresponding income taxes 37.2 (2.1) (0.2) 108.3 (8.1) 0.7 (0.9) (20.6) 73.4 (9.2) 25.7 22.8 Items that will be reclassified later to net earnings Fair value revaluation of investment (note 10) Reclassification of the change in investment at fair value to net earnings following the disposal of a portion of the investment (note 10) Reclassification of shares of an associate's other comprehensive income to net earnings (note 10) Corresponding income taxes (17.1) (3.9) (0.4) 1.4 27.1 1,745.6 (1.4) 0.2 (1.2) 72.2 Comprehensive income 680.6 Attributable to: Equity holders of the parent Non-controlling interests 1,743.6 2.0 1,745.6 863.9 18.7 680.6 See accompanying notes 1 - 2018 annuel 100 EN - Adobe Acrobat Pro DC File Edit View Sign Window Help Home Tools 2018 annuel 10Q EN X Subscribe 1 43 / 83 75% Consolidated statements of financial position As at September 29, 2018 and September 30, 2017 Millions of dollars) 2018 2017 ASSETS Current assets Cash and cash equivalents Accounts receivable (notes 15 and 26) Inventories (note ) Prepaid expenses Current taxes 226.9 538.1 1,099.1 32.1 20.6 1,916.8 148.9 313.7 856.6 19.0 18.1 1,356.3 >> Non-current assets Investment in an associate (note 10) Fixed assets (note 11) Investment properties (note 12) Intangible assets (note 13) Goodwill note 14) Deferred taxes (note 7) Defined benefit assets (note 23) Investment at fair value (note 10) Other assets (note 15) 2,523.4 46.1 2.914.4 3,302.2 4.5 55.1 66.9 92.8 10,9222 475.9 1,761.5 15.0 389.1 1,973.8 1.9 39.3 37.9 6,050.7 LIABILITIES AND EQUITY Current liabilities Bank loans (note 16) Accounts payable (notes 17 and 26) Current taxes Provisions (note 18) Current portion of debt (note 19) Non-controlling interests (note 28) 0.1 1,358 5 254.8 8.0 13.3 1.1 1,038.1 8.8 2.7 12.9 224.3 1,285.9 1,634.7 Non-current liabilities Debt (note 10) Defined benefit liabilities (note 23) Provisions (note 18) Deferred taxes (note 7) Other liabilities (note 20) ) Non-controlling interests (note 28) 2,630.4 81.3 22.3 846.5 11.7 39.3 5.266.2 1.441.6 92.7 2.0 255.7 12.3 36.6 3,126.8 Equity Attributable to equity holders of the parent Attributable to non-controlling interests 5.642.8 13.2 5,656.0 10.922.2 2.911.1 12.8 2,923.9 6,050.7 Commitments and contingencies notes 24 and 25) Event after the reporting period (note 29) 1