Question 4 (9 marks) Using the Information provided below for JB Hi Fi and Harvey Norman: a) Review each ratio briefly stating what it tells you about the company and which company, If either, is better. (75 marks) b) Based on your findings justify which company you would seriously consider as an Investment for your own money. (15 marks) Profitability Ratios Item Net Profit Margin (%) ROE (%) ROA (%) JB HI FI 06/19 3.52 23.92 10.19 Harvey Norman 06/19 12.85 13.01 9.05 Asset Efficiency Ratios Days Inventory Days Receivables Days Payables 45.61 3.34 33.79 45.09 81.32 32.30 Liquidity Ratios Current Ratio Quick Ratio 1.38 0.42 1.62 1.18 Capital Structure Ratios Gross Gearing (D/E) (%) Net Interest Cover 42.05 26.13 26.31 25.84 Market Performance Year End Share Price PER 25.85 12.01 4.07 11.46 Question 4 (9 marks) Using the Information provided below for JB Hi Fi and Harvey Norman: a) Review each ratio briefly stating what it tells you about the company and which company, If either, is better. (75 marks) b) Based on your findings justify which company you would seriously consider as an Investment for your own money. (15 marks) Profitability Ratios Item Net Profit Margin (%) ROE (%) ROA (%) JB HI FI 06/19 3.52 23.92 10.19 Harvey Norman 06/19 12.85 13.01 9.05 Asset Efficiency Ratios Days Inventory Days Receivables Days Payables 45.61 3.34 33.79 45.09 81.32 32.30 Liquidity Ratios Current Ratio Quick Ratio 1.38 0.42 1.62 1.18 Capital Structure Ratios Gross Gearing (D/E) (%) Net Interest Cover 42.05 26.13 26.31 25.84 Market Performance Year End Share Price PER 25.85 12.01 4.07 11.46