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You as a finance consultant and a client intend to make an investment in 7Eleven in Malaysia. You are required to prepare full of report
You as a finance consultant and a client intend to make an investment in 7Eleven in Malaysia. You are required to prepare full of report and propose 7Eleven to client. Prepare a report in which you evaluate the company's performance and recommend whether to invest. You are required to calculate and interpret (2018 and 2019) the results of the financial statements of the company covering the following areas of analysis: 1. Liquidity Ratios - Current ratio - Quick ratio 2. Profitability Ratios Operating profit margin - Gross profit margin - Average collection Period 3. Activity Ratios - Inventory turnover ratio Total asset turnover ratio 4. Financial Leverage Ratios - Total debt to asset ratio 5. Return Ratios - Return on assets ratio - Retum on equity ratio Ratio for industry average Current ratio Quick ratio Inventory tumover Average collection period Total asset turnover Debt ratio Gross profit margin Operating profit margin Return on total assets (ROA) Retum on common equity (ROE) 2.35 0.87 4.55 35.8 days 1.09 0.30 0.202 0.135 0.099 0.167 *Note: Interpretation of each ratio should compare with industry average ratio You as a finance consultant and a client intend to make an investment in 7Eleven in Malaysia. You are required to prepare full of report and propose 7Eleven to client. Prepare a report in which you evaluate the company's performance and recommend whether to invest. You are required to calculate and interpret (2018 and 2019) the results of the financial statements of the company covering the following areas of analysis: 1. Liquidity Ratios - Current ratio - Quick ratio 2. Profitability Ratios Operating profit margin - Gross profit margin - Average collection Period 3. Activity Ratios - Inventory turnover ratio Total asset turnover ratio 4. Financial Leverage Ratios - Total debt to asset ratio 5. Return Ratios - Return on assets ratio - Retum on equity ratio Ratio for industry average Current ratio Quick ratio Inventory tumover Average collection period Total asset turnover Debt ratio Gross profit margin Operating profit margin Return on total assets (ROA) Retum on common equity (ROE) 2.35 0.87 4.55 35.8 days 1.09 0.30 0.202 0.135 0.099 0.167 *Note: Interpretation of each ratio should compare with industry average ratio
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