There are 2 companies

- Farm Pride Foods Limited (ASX code: FRM)

06/17	06/18
Profitability ratios
Net Profit Margin (%)	8,69	1,10
EBIT Margin (%)	12,69	1,90
EBITA Margin (%)	12,69	1,90
EBITDA Margin (%)	16,10	6,29
ROE (%)	18,18	1,99
ROA (%)	13,79	1,58
ROIC (%)	22,05	1,98
NOPLAT Margin (%)	8,80	1,37
Asset Management Ratios
Invested Capital Turnover	2,51	1,45
Inventory Turnover	21,34	12,37
Asset Turnover	1,57	1,16
LT Asset Turnover	3,09	1,78
PPE Turnover	3,22	1,83
Depreciation/PP&E (%)	5,38	4,59
Depreciation/Revenue (%)	3,41	4,40
Wkg Capital/Revenue (%)	7,70	13,37
Working Cap Turnover	12,99	7,48
Debt and Safety Ratios
Financial Leverage	1,34	1,57
Gross Gearing (D/E) (%)	0,71	25,50
Net Gearing (%)	-16,52	25,49
Net Interest Cover	82,55	4,91
Current Ratio	1,98	1,57
Quick Ratio	1,69	1,15
Gross Debt/CF	0,03	2,45
Net Debt/CF	-0,64	2,45
NTA per Share ($)	0,85	0,85
BV per Share ($)	0,85	0,85
Cash per Share ($)	0,15	0,00
Cashflow Ratios
Receivables/Op. Rev. (%)	9,02	9,16
Inventory/Trading Rev. (%)	4,69	8,09
Creditors/Op. Rev. (%)	12,29	14,75
Funds from Ops./EBITDA (%)	80,04	58,23
Depreciation/Capex (%)	145,59	28,02
Capex/Operating Rev. (%)	2,34	15,69
Days Inventory	17,10	29,51
Days Receivables	32,94	33,43
Days Payables	44,87	53,85
Gross CF per Share ($)	0,22	0,09
Sales per Share ($)	1,77	1,55
Market Data
Year End Share Price ($)	1,16	0,88
Market Cap.($m)	64,01	48,28
Net Debt ($m)	-7,71	12,02
Enterprise Value ($m)	56,30	60,30
Valuation Multiples
EV/EBITDA	3,58	11,20
EV/EBIT	4,55	37,13
Market Cap./Rep NPAT	7,55	95,99
Market Cap./Trading Rev.	0,66	0,56
Price/Book Value	1,37	1,02
Price/Gross Cash Flow	5,33	9,86
PER	7,55	51,47

- Select Harvests Limited (ASX code: SHV) . 2017 2018

Net Profit Margin (%)	3,85	9,86
EBIT Margin (%)	7,09	16,90
EBITA Margin (%)	7,09	16,90
EBITDA Margin (%)	13,28	25,03
ROE (%)	3,33	5,38
ROA (%)	2,66	4,68
ROIC (%)	3,21	5,71
NOPLAT Margin (%)	5,32	11,71
Asset Management Ratios
Invested Capital Turnover	0,60	0,49
Inventory Turnover	2,74	1,89
Asset Turnover	0,50	0,40
LT Asset Turnover	0,70	0,58
PPE Turnover	0,85	0,70
Depreciation/PP&E (%)	3,78	3,99
Depreciation/Revenue (%)	6,19	8,14
Wkg Capital/Revenue (%)	48,16	64,77
Working Cap Turnover	2,08	1,54
Debt and Safety Ratios
Financial Leverage	1,73	1,36
Gross Gearing (D/E) (%)	52,91	18,79
Net Gearing (%)	52,52	18,69
Net Interest Cover	3,38	6,42
Current Ratio	1,05	4,49
Quick Ratio	0,38	1,46
Gross Debt/CF	5,49	1,73
Net Debt/CF	5,45	1,72
NTA per Share ($)	2,95	3,34
BV per Share ($)	3,77	3,98
Cash per Share ($)	0,01	0,00
Cashflow Ratios
Receivables/Op. Rev. (%)	17,14	21,98
Inventory/Trading Rev. (%)	36,45	52,93
Creditors/Op. Rev. (%)	5,96	11,12
Funds from Ops./EBITDA (%)	121,59	61,60
Depreciation/Capex (%)	52,86	98,51
Capex/Operating Rev. (%)	11,72	8,26
Days Inventory	133,04	193,18
Days Receivables	62,56	80,23
Days Payables	21,74	40,59
Gross CF per Share ($)	0,36	0,47
Sales per Share ($)	3,22	2,34
Market Data
Year End Share Price ($)	4,90	6,90
Market Cap.($m)	360,67	657,06
Net Debt ($m)	145,82	70,75
Enterprise Value ($m)	506,49	727,81
Valuation Multiples
EV/EBITDA	15,89	14,08
EV/EBIT	29,78	20,85
Market Cap./Rep NPAT	39,00	32,25
Market Cap./Trading Rev.	1,50	3,18
Price/Book Value	1,30	1,74
Price/Gross Cash Flow	13,47	15,93
PER	39,52	29,87

For each of the two companies, analyse their ability to successfully manage each of their categories of expenses in 2018 as compared to 2017. Use three margin ratios to support your answer and explain any change in the ability of each company to control costs. Note: ensure that you analyse in this question, not just describe the ratio values.