$$ Step $1$: Download the $2021$ Annual Report from the company$$s website. From the Telus homepage, click $$About Us$,$ and then click $$Investor Relations.$$ You will then be able to find the $2021$ Annual Report. Within the Annual Report, locate the Consolidated Financial Statements. Start looking on page $138.$ Transfer this data to Excel.

$$ Step $2$: Calculate the following ratios for the $2021$ and $2020$ fiscal years. You must clearly show the calculations and should not download pre$-$calculated ratios from another source. Once your ratios are complete, please copy the ratios from your spreadsheet to your document. Use a basic copy$/$paste so that you can get feedback on your answers. Do not copy as a picture. $(35$ marks$)$

o Current ratio

o Quick ratio

o Times interest earned

o Accounts receivable turnover

o Average collection period

o Asset turnover

o Gross profit margin

o Net profit margin

o Total debt ratio

o Return on assets

o Return on equity

$20212020$

Current Ratio CA$/$CL $0\mathrm{.}610\mathrm{.}79$

Quick ratio $($CA $-$ Inventory$)/$CL $0\mathrm{.}550\mathrm{.}72$

times interest earned EBIT$/$Interest $(3\mathrm{.}06)(2\mathrm{.}31)$

accounts receivable turnover Sales$/$Accounts Receivable $6\mathrm{.}466\mathrm{.}57$

average collection period $365/$receivables turnover $56\mathrm{.}4955\mathrm{.}59$

asset turnover sales$/$total assets $0\mathrm{.}360\mathrm{.}36$

gross profit margin gross profit$/$sales $0\mathrm{.}360\mathrm{.}36$

net profit margin net income$/$sales $0\mathrm{.}100\mathrm{.}08$

total debt ratio $($TA$-$TE$)/$TA $0\mathrm{.}670\mathrm{.}71$

return on asserts net income$/$total assets $0\mathrm{.}040\mathrm{.}03$

return on equity net income$/$total equity $0\mathrm{.}110\mathrm{.}10$

$$ Step $3$: Perform a three$-$stage DuPont analysis. Once you have calculated the DuPont ratio, provide a written analysis of each section. Tie your analysis into specific accounts and changes from one year to the next. Note that stating $$The ratio increased$$ is not an analysis. $(15$ marks$)$

$1.$ Operating efficiency $($profit margin$)$

$2.$ Asset Use efficiency $($total asset turnover$)$

$3.$ Financial Leverage $($Equity Multiplier$)$

$$ Step $4$: Comment on any areas of strength or weakness of the company based on your results of Steps $2$ and $3$ above. Make sure to look not just at absolute levels, but also at trends over time. Again, be specific. Set up your analysis under the categories of solvency, liquidity, profitability, and asset management. Within each category, discuss why each ratio improved or worsened. $(30$ marks$)$

$$ Step $5$: Explain whether there would be any difference to your analysis if you were an investor or if you were the CFO. How would the data quality differ in those two roles? $(20$ marks$)$