Question
The objective of this exercise is to develop your ability to perform a comprehensive analysis on a set of financial statements. Use the copy of
The objective of this exercise is to develop your ability to perform a comprehensive analysis on a set of financial statements. Use the copy of the 2018 annual report of Dollarama Inc. (year-end January 28, 2018)You may need to go to Dollaramas website to get the full annual report including the annual information return.
Evaluate Dollaramas profitability for 2018 compared with 2017. In your analysis, compute the following ratios and then comment on what those ratios indicate. NOTE: You will have to look up the annual report for 2017 to obtain total assets and shareholders equity for 2016. See Sedar or use Dollaramas website.
- Return on sales
- Asset turnover
- Return on assets
- Leverage ratio
- Return on equity
- Gross profit percentage
- Earnings per share (show computation)
- Book value per share
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