Question $1$

Evaluate Aritzia$$s ability to sell inventory and pay debts during $2022$ and $2021.$ In the analysis, you should compute the following ratios, and then comment on what those ratios indicate. Since the $2022$ annual report only includes the balance sheets for $2022$ and $2021,$ you will need to look up the annual report for $2021$ for information about $2020$ accounts receivable, inventory, and accounts payable.

$1.$ Accounts receivable turnover

$2.$ Inventory turnover

$3.$ Accounts payable turnover and days$$ payable outstanding

$4.$ Cash conversion cycle

$5.$ Current ratio

$6.$ Quick $($acid$-$test$)$ ratio

$7.$ Debt ratio

Question $2$

Evaluate Aritzia$$s cash flow.

$1.$ For $2022,$ is Aritzia$$s net cash flow from operations greater than or less than net income? What is the primary cause of the difference?

$2.$ For $2021$ and $2022,$ what is the primary source of cash from investing activities? What is the primary use of cash from investing activities for $2021$ and $2022?$

$3.$ For $2021$ and $2022,$ what is the primary source of cash from financing activities? What is the primary use of cash from financing activities for $2021$ and $2022?$

$4.$ What trend$($s$)$ do you detect from this analysis?

Question $3$

Evaluate Aritzia$$s shares as an investment.

$1.$ What was the closing market price of Aritzia$$s shares on February $28,2022,$ the next trading day after the balance$-$sheet date of February $27,2022?$ Google Aritzia$$s stock price on Yahoo Finance Aritzia$$s ticker symbol is ATZ.TO$.$

$2.$ Compute the price$-$earnings ratio using your EPS calculation and the market price you just determined.

$3.$ Based on Management$$s Discussion and Analysis $($annual report$)$ as well as any business news $($Google Finance is an example$),$ would you evaluate the company$$s shares as a $$buy$,$hold$,$ or $$sell$?$ State your reasons.