To: investors From: Accounting Adviser – Tutorial B-Group 13 Financial Analysis for 4 dominated companies and recommendation for the investment 1.0 Introduction The report will explore the profitability, liquidity, asset efficiency and capital structure from 2013 to 2016 for four companies. Firstly, Tox Free Solutions Limited (TOX) is one of the largest integrated industrial services and waste management businesses. It has 28 subsidiaries and provides national services from over 57 locations Australia wide ("Toxfree - Annual Reports," 2017). The Reject Shop Limited (TRS) has over 300 stores located in Australia. The core business is to provide affordable everyday need items at low prices to the value-conscious customers ("Financial Report | The Reject Shop," 2017). Next, Ramsay Health Care (RHC) is a global hospital group operating over 221 hospitals, their business across Australia, France, United Kingdom and more ("Ramsay Health Care Annual Report 2016," 2017). Lastly, Prime Media Group Limited (PRT) operates in the media industry and solely operations within Australia. There are two subsidiary companies in Great Britain and Europe ("PRIME Media Group - Annual Reports," 2017). Obviously, all …show more content…
The current ratio is mainly used to give an idea of the company's ability to pay back its liabilities with its assets. If the current ratio is too low, the company would have difficulties in paying off its short-term debts. Generally, higher current ratios are preferred, but on the other hand, firms with too high ratios may hold too much cash or manage inventory inefficiently. According to the ratio, PRT has a good current ratio that remained within the 1.70 range for the past three years, it is proving that the firm generally has the ability in meeting its short-term