Q$1$: $($Refers to Homework Question $1$ in Week $5)$

Required $($rounding up numbers to $2$ decimal places $0.$ or $x\%,$ and using the closing balance to calculate ratios$)$:

Using the financial information provided in last week, evaluate H&M and Inditex's financial management. If you need further information, please collect this from DatAnalysis Premium.

$($a$)$ List and calculate three ratios used to evaluate the short$-$term liquidity.

$\backslash$table$[[$FY $2020,$H&M $2014,$Inditex $2014],[$Current Ratio,,$],[$Quick Ratio,,$],[$Operating Cash Flow Ratio,,$]]$

$($b$)$ Compare the liquidity position of H&M and Inditex. Provide explanation based on the calculated ratios.

$($c$)$ List and calculate four ratios used to evaluate the long$-$term solvency.

$\backslash$table$[[$FY $2020,$H&M $2014,$Inditex $2014],[$Interest Coverage Ratio,,$],[$Liabilities to Equity Ratio,,$],[$Debt to Equity Ratio,,$],[$Net Debt to Equity Ratio,,$]]$

$($d$)$ Compare the solvency position of H&M and Inditex. Provide explanation based on the calculated ratios.