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Question 4 (8 marks) Using the information provided below for Breville Group Limited (sells home appliances) and Globe International Limited (skating and footwear apparel): a)
Question 4 (8 marks) Using the information provided below for Breville Group Limited (sells home appliances) and Globe International Limited (skating and footwear apparel): a) Review each ratio briefly stating what is tells you about the company and which company, if either, is better. (7.5 marks) b) Based on your findings justify which company you would seriously consider for an investment. (0.5 mark) Breville Globe Item 06/20 06/20 Profitability Ratios 4.95 4.02 Net Profit Margin (%) ROE (%) ROA (%) 11.05 13.62 8.22 8.26 Asset Efficiency Ratios 58.93 49.48 Days Inventory Days Receivables Days Payables 58.27 35.84 56.69 57.14 Liquidity Ratios Current Ratio 2.44 2.38 Quick Ratio 1.60 1.64 Capital Structure Ratios Gross Gearing (D/E) (%) 5.71 20.52 Net Interest Cover 10.01 8.36 Market Performance PER 63.33 7.17
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