Step 7

Ratio Analysis

Calculating the ratios of my company in some areas was not able to be completed. When a company does not pay dividends to its shareholders due to the Board of China Outfitter’s Holdings Ltd making it clear in their reports that dividends would not be reported on (Annual Report 2018 – Page 36)

Economic Profit

In this area I was to work out the Economic Profit of China Outfitters Holdings Ltd by using 8% as the firm’s cost of capital (WACC). This is an interesting area and when you look at the repayment of bank loans for 2018 the report shows that there were no outstanding loans.

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