The financial statements of Jean Coutu are presented in Appendix B following the financial statements for Shoppers Drug Mart in Appendix A.

Instructions

(a) For each company, calculate or find the following ratios and values for the most recent fiscal year. Industry averages, where available, are shown in parentheses.

1. Working capital (n/a)

2. Current ratio (1.4:1)

3. Debt to total assets (30.6%)

4. Earnings per share (n/a)

5. Price-earnings ratio (the year-end share price was $42.80 for Shoppers Drug Mart and $15.78 for Jean Coutu)

(42.0 times)

(b) Based on your findings for part (a), discuss the relative liquidity, solvency, and profitability of the two companies and their industry.