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Q 1 : ( Refers to Homework Question 1 in Week 5 ) Required ( rounding up numbers to 2 decimal places 0 . or

Q1: (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.
\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.
\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.
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