You work for the financial analysis section of a merchant bank and are asked to prepare a report on the following figures, which relate to a clothing retailer, who is looking to the bank to take a share stake:
You are asked to prepare:
(a) Eight key ratios which are relevant to the analysis of this company; tax rate 5 30 per cent.
(b) A report which attempts to explain what has been happening to the company over the last three years, using ratios and trends as appropriate, makes recommendations as to the desirability of becoming involved and makes suggestions for the future management of the company.