You have just joined an investment company. Ronald, the CEO of the investment company, has asked you to take a closer look at Sheng Siong Group Ltd, the third largest supermarket operator. It was reported by The Business Times on 26 January 2021 that "Sheng Siong [employees are] to get up to 16 months' bonus after strong earnings amid COVID-19 pandemic".

He asked you to appraise whether Sheng Siong is a good investment option.

(a) Use the Annual Reports of Sheng Siong Group Ltd for 2020 and 2019 [found in the link Annual Reports & Related Documents - Singapore Exchange (SGX)] and the information on the share prices for the corresponding period (found in the link SGX Listed Companies | SGinvestors.io) to prepare a ratio analysis of the financial statements for the years 2019 - 2020 and comment on the business performance and financial position from the viewpoint of a prospective investor.

Make sure all the following categories are covered.

Liquidity (Category)

Compute one ratio from the following:

o Current ratio OR Acid-test ratio

Efficiency (Category)

Compute four ratios from the following: o Inventory turnover OR Days' sales in inventory

o Accounts receivable turnover OR Days' sales uncollected o Total asset turnover o Accounts payable turnover OR Days' purchases in accounts payable

Solvency (Category) Compute two ratios from the following:

o Times-interest earned o Debt-to-equity OR Equity ratio

Profitability (Category) Compute three ratios from the following: o Gross margin ratio o Profit margin ratio o Return on total assets OR Return on ordinary shareholders' equity

Market Prospects (Category) Compute two ratios from the following: o Price-earnings ratio o Dividend yield

(b) Conclude whether Sheng Siong is a good investment option based on the analysis

conducted in part (a).