I am posting the entire problem, the Financial ratio analysis discussion is what I need the most help with.
For your final project, perform a close reading of Case 18 "Wal-Mart Stores, Inc.: On Becoming the World's Largest Company", (pages 18-1 through 18-21). Using the guidelines established in Chapter 15 of your text, produce a "Strategic Audit" for the Wal-Mart case. Instructor Comments:
OK...this is it! This is a huge project that will require a ton of effort, especially considering you probably have another course this term, and you have busy lives... I need to emphasize the need for a conversational style, paragraph-oriented paper...DO NOT use the outline and write short statements, rather use the outline as a guide... I need to see an EFAS and IFAS...the actual tables just like Unit 2 (SFAS is optional), as well as some financial ratio analysis discussion. Chapter 14 covers financial ratios....you might do a ratio search on google or yahoo...I want to know why you chose the ratios you are discussing, what they mean, etc. Put this in the finance portion of your project.
Per your request, I will focus specifically on the financial ratio analysis discussion. The attached document provides a ...
Financial ratio analysis discussion
Ratio Analysis and Interpretation
Question 5 (10)
The following information is applicable to questions 5.1 to 5.4:
Ladders Ltd had their financial year end on 31 July 2015. The manager of the business you work for has tasked you to do an analysis of Ladders Ltd as he wants to go into a supplier agreement with them and needs to be sure that they are profitable and have good working capital efficiency before he signs such a large agreement. Assume that all purchases are on credit. Below you will find extracts from the financial statements of Ladders Ltd:
Extract from the statement of comprehensive income:
R15 000 000
Cost of sales
R11 000 000
R2 000 000
R1 200 000
Extract from the statement of financial position:
R8 500 000
R1 300 000
Other current assets
R2 400 000
R8 400 000
R3 200 000
Question 5.1 (1)
What was Ladders Ltd's gross profit for 2015?
Question 5.2 (2)
What was the company's return on assets (ROA) for 2015?
Question 5.3 (3)
Calculate the average payment period for the 2015.
Question 5.4 (4)
Calculate the current ratio for Ladders Ltd and comment on how this may impact on your business if you were to become a supplier that sells on credit to Ladders Ltd.