Problem
Alcon Ltd is a private company providing refrigeration services to large shopping centres. The following tables are their financial statements.
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Alcon Ltd Profit and Loss report for the year 2020 (values in USD millions)
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Revenue
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252.18
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Cost of Goods Sold
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57.24
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Gross Profit
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194.94
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Operating Expenses
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177.76
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EBIT
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17.18
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Interest Expense
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11.30
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Profit before tax
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5.88
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Tax Expense
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1.76
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Net Profit
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4.12
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Alcon Ltd Balance Sheet as at 31st December 2020 (values in USD millions)
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2020
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2019
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Assets
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Current Assets
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Cash
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13.1
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11.2
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Cash Equivalents
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5.23
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4.9
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Marketable Securities
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3.1
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3.08
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Accounts Receivable
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2.14
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3.15
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Inventory
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18.69
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22.77
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Total Current Assets
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42.26
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45.1
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Non-Current Assets
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Plant and Equipment
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282.83
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77.6
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Accumulated Depreciation
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-78.71
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-31.26
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Intangible Assets
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3.87
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4.31
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Total Non-Current Assets
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207.99
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50.65
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Total Assets
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250.25
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95.75
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Liabilities
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Current Liabilities
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Accounts Payable
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16.02
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11.14
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Short-term debts
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55.32
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33.97
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Total Current Liabilities
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71.34
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45.11
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Non-Current Liabilities
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Long-term debts
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134.3
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12.45
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Total Non-Current Liabilities
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134.3
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12.45
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Total Liabilities
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205.64
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57.56
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Shareholders' Equity
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Common stock
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30.51
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28.21
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Retained earnings
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14.1
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9.98
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Total Equity
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44.61
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38.19
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Key notes on the financial statements:
• The short-term debt is a line of credit at a 10% interest rate.
• The long-term debt is a secured bank loan at a 4.3% interest rate.
• In 2020 the company engaged in an aggressive growth strategy investing in new equipment that would help them set up the air-conditioning division. This accounts for the increase in Non-Current Assets and Long-term Debt.
Question: What is the current ratio, quick ratio, operating cash cycle, and working capital of Alcon Ltd?