Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been provided with the following ratio's and select financial Information for CREEATE Ltd, a large retail company. The company sells a vanety of
You have been provided with the following ratio's and select financial Information for CREEATE Ltd, a large retail company. The company sells a vanety of baby and children's clothes, products, toys educational material etc. The company has a number of locations across Canada, and also sell goods online CREEATE Ltd Industry Average (in millions) (in millions) 2019 $ Total Revenue Total Expenses Net Income 5,134 4,107 2020 $ 5,288 4,230 2019 $ 5,609 11.207 4,402 2020 $ 6,002 11.921 1,027 1.0581 4,780 Total Assets 15,250 16,800 34.500 34.550 13,260 14.220 Total Equity Gross Margin 25,780 55% 25.050 59% 60% 55% 20% 20% 28% 29% 7% 7% 13% 14% Profit Margin Return on Assets Return on Equity Current Ratio Quick Ratio AR Turnover B% 8% 17% 19% 1.81 0.72 1.75 0.84 2.55 1.2 7.5 2.42 1.31 6 5.5 7.4 Inventory Turnover 4.2 4 4.5 3.7 Required: Examine the information and provide some discussion of what the extracts tell you about the business. Your analysis should be based on our class discussion. You should ensure that you compare the various ratios (prohtability, liquidity/solvency, activity). You should also provide a supported response on whether you feel the company had a stronger performance this year compared to last (in comparison to the industry), and explain why
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started