select a Canadian public company from the list provided a few pages down.

Analytical Review and Calculation of Critical Financial Ratios You will need to complete the following ratio analysis and it is good to put the financial statements into the following Excel Templates (you must create the templates yourself).

Using EXCEL duplicate this format in order to complete the assignment efficiently and with more accuracy.

Use this format as an example to complete the ENTIRE Balance sheet.

Use the following format for the entire Income Statement:

Ratio Analyses 1. Discuss why a Bank may focus on the liquidity ratios of your PLC if the PLC was looking for some short-term financing (i.e., a short-term bank loan). (4 marks)

a. Show all your formula and calculation details for the following ratios for your PLC for 2020 and 2019 I. Current Ratio (4 marks) II. Quick or Acid test ratio (4 marks)

b. Based on your above ratio calculations discuss whether or not you think that a Bank would lend your PLC company money or not. (4 marks) Mark out of /16

2. Profitability ratios help to determine the efficiency or performance of an organization with respect to the resources it has at its disposal.

a. Using your PLC financial statements calculate the following ratios for 2020 and 2019 ENSURE that you provide your formulas and your calculations for full marks. i. Profit margin (2 marks) ii. Return on assets (or investments) (2 marks) iii. Return on equity (2 marks)

b. Discuss, based on your ratios above, if the company has improved its overall profitability or not. (4 marks)

c. Go to the internet and find a profitability ratio for the industry compare your PLC with the industry standard. Is your PLC more or less profitable than other companies in the industry? (4 marks) Mark out of /14

3. Asset utilization ratios help to determine how quickly a companys assets are being turned over in the cash cycle I.e., from the point of receiving inventory, selling inventory (sometimes on credit) to the collection of receivables (cash). This cycle is critical as it will determine how efficient your company is in converting inventory to cash and it helps determine the length of the cash cycle for cash budgeting purposes.

a. Calculate the following asset utilization ratios for your PLC for 2020 and 2019: i. Inventory Turnover (2 marks) ii. Inventory Holding period (2 marks) iii. Receivable Turnover (2 marks) iv. Average collection period (days sales outstanding) (2 marks) v. Total Asset Turnover (2 marks)

b. What is the average cash conversion period in 2019 of your PLC? (hint add inventory holding period and days sales outstanding). Did the average number of days to convert inventory to cash improve in 2020? (4 marks)

4. Debt utilization ratios evaluate the overall debt of a company and whether they are able to leverage the company with more debt or not.

a. Calculate the following asset utilization ratios for your PLC for 2020 and 2019: i. Debt to total assets (2 marks) ii. Times Interest Earned (2 marks)

b. Based on your above ratio calculations discuss whether or not you think that the utilization ratios have improved or not. (2 marks)

Publicly Listed Companies - Choose One from the list below Audited Financial Statements are provided in Brightspace. Waterloo Brewing Company Maple Leaf Foods Inc. Metro Inc. Leons Furniture Ltd. Roots Ltd. Canadian Tire Corporation

Use this format as an example to complete the ENTIRE Balance sheet. Enter your Company Name here Account Name 2020 2019 Current Assest ist all accounts Total Current Assets Non Current Assets ist all accounts Total Non Current Assets Total Assets Current Liabilities ist all accounts Total Current Liabilities Non Current Liabilities ist all accounts Total Non Current Liabilities Total Liabilities Shareholders' Equity Total Total Liabilities and Shareholders' Equity Use the following format for the entire Income Statement: Enter your Company Name here 2020 2019 Account Name Sales or Revenue ist all accounts Cost of Goods or Sales Gross Profit Operating Expenses ist all accounts Other items ist all accounts Profit or net income