The financial statements of Jean Coutu are presented in Appendix B following the financial statements for Shoppers

Question:

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

Instructions

(a) Calculate the liquidity ratios for 2012 that you believe are relevant for each company. Which company is more liquid?

(b) Calculate the solvency ratios for 2012 that you believe are relevant for each company. Which company is more solvent?

(c) Calculate the profitability ratios for 2012 that you believe are relevant for each company. For the return on common shareholders' equity ratio, note that neither company has any preferred shares. Which company is more profitable?

(d) What information that is not included in the financial statements might also be useful for comparing Jean Coutu and Shoppers Drug Mart?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...