You are the CFO of an investment firm. Evaluate twocompanies (Aritzia and Lululemon) and make a recommendation to the Board which company (either one, both or none) the firm should invest in. Keep the use of ratios to a maximum of 5 and your comment and recommendation to less than 150 words) The objective is to show your ability to perform a comprehensive analysis on a set of financial statements. Use the latest annual and quarterly financial statements for both companies to perform the analysis. Hint: Evaluation using common-size percentages for sales, gross profit, operating income, etc. Evaluate and compare companys ability to sell inventory (i.e. turnover) Evaluate and compare companys cash flows. Evaluate market price for both companies and compare it to book value (overpriced?)Based on an overall analysis (qualitative and quantitative), make your recommendation.
Aritzia Inc. Condensed Interim Consolidated Statements of Financial Position As at August 29, 2021 and February 28, 2021 PARII (Unaudited, in thousands of Canadian dollars) FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS August 29, lululemon sthletics inc. CONSOLIDATED BALANCE SHEETS WE AROUND Note 2021 February 28, 2021 $ August 1 2821 any 31, 2021 ASSETS Current asse's Ces and cash berts Account CEV Inventaries Pred and receivable income axes Press Expenses and the summer 5,6 1 11700413 56150 335 107 207 141 473 2.275 327 B38 187 729 522 307 024 75 690 6.554 995- 124.505 4.409 0933 Assets Cash and cash equivalents Accounts receivable Income taxes recoverable Inventory Prepaid expenses and other current assets Total current assets Property and equipment Intangible assets Goodwill Right-of-use assets Other assets Deferred tax assets Total assets 1150517 62399 $47230 129 125 125 107 2.124179 745 607 734 35 336 377 30.080 6.731 1056626 4185 2:5 Property and autement.net mouse lease SESES GODOM ang blessene Detered income tax assets Other current assets 131,796 $ 7,835 3,307 181,929 28,700 353,567 201,527 88,287 198,322 381,134 4,860 17,200 1,244,897 $ 7 5,8 5,8 5,9 149, 147 6,202 4,719 171.821 23,452 355,341 189,568 62,049 151,682 363,417 2.886 15,794 1,140,737 $ $ $ $ LIABILITIES AND STOCKHOLDERS' EQUITY Currentes Accounts able Accued Inverbes Coner studies Accued compensation and rested exsenses Current lessebles Current Income tes cele Unredeemed it card Cerer currenties 10 $ 131,893 8,287 203 546 5 12316 269.024 250 331 150017 33743 137 023 24 2BE 382 354 544734 33073 50010 9.750 1.33932 172 246 14 356 211 911 130172 155.091 3357 155 340 23999 383179 $22.50 43390 58755 3.976 2.626 645 5,13 9 Noncurrentiese bites Non-current incomes , Deferred income taxes Other non-currenties Liabilities Accounts payable and accrued liabilities Income taxes payable Current portion of contingent consideration Current portion of lease liabilities Deferred revenue Total current liabilities Lease liabilities Other non-current liabilities Contingent consideration Non-controlling interest in exchangeable shares liability Deferred tax liabilities Long-term debt Total liabilities 147,219 $ 15,889 6,619 85,519 40,667 295,913 439,508 16,935 6,618 33,500 26,669 71,452 37 563 249,195 423,380 15,059 9 11 5.13 5.13 5 Comments and contingencies Siiderscout Unsesirates preferred stock 30.01. 5.000 Sares authorised non issues and outstanding Benaresse Stock D. 50.000 shares uthorized 5.203 and 5 203 ssues and outstanding Special voting Stock 50000005 D. 50.000 shares stored 5.200 and 5203 Jed and outstanding ODOCOS Common stock 90 cerve 200.000 shares stored 124 544 and 125 150 issues and outstanding Aditional in Retired earnings Accumulated ser comprehensuelos 12 17,985 74,855 780,474 $ 819,143 $ 826 332 567 2346 48 523 393.737 2449 145 09.099 2.671 166 4.-05.0935 (152, 14 $ 2553 SE 4235 235 5 Shareholders' equity Share capital Contributed surplus Retained earnings Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity 234,730 $ 58,123 132,967 (66) 425,754 1,244,897 $ 228,665 56,606 75,216 (224) 360,263 1,140,737 $
