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.

Required:

(a)Use the Annual Reports of Sheng Siong Group Ltd for 2020 and 2019 [https://www.sgx.com/securities/annual-reports-related-documents] and the information on the share prices for the corresponding period (https://sginvestors.io/sgx/stock-listing/alpha) 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:

Current ratio OR Acid-test ratio

-Efficiency (Category)

Compute four ratios from the following:

Inventory turnover OR Days sales in inventory

Accounts receivable turnover OR Days sales uncollected

Total asset turnover

Accounts payable turnover OR Days purchases in accounts payable

-Solvency (Category)

Compute two ratios from the following:

Times-interest earned

Debt-to-equity OR Equity ratio

-Profitability (Category)

Compute three ratios from the following:

Gross margin ratio

Profit margin ratio

Return on total assets OR Return on ordinary shareholders equity

-Market Prospects (Category)

Compute two ratios from the following:

Price-earnings ratio

Dividend yield

The ratios (total 12) must be computed using SUSS Financial Ratio Formula Sheet. You can download the Formula Sheet from Canvas. The analysis must not exceed 1,000 words (excluding the appendix). All detailed computations, tables and charts should be in appendices.