Financial Management

SECTION A

INTRODUCTION

Clicks Group is a health and beauty focused retail and supply group which has been listed on the JSE Limited since 1996. Through market-leading retail brands Clicks, Musica and The Body Shop, the group has over 600 stores across southern Africa. Clicks Group is a leader in the healthcare market where Clicks has the largest retail pharmacy chain with over 330 in-store dispensaries, including a direct-to-patient courier pharmacy service, while United Pharmaceutical Distributors (UPD) is South Africa's leading full-range national pharmaceutical wholesaler.

The Clicks group was ranked third in the Financial Mail Top Companies 2014 survey and the highest retailer.

CLICKS FINANCIAL FIGURES:

YEAR | 2014 | 2013 | 2012 | 2011 | 2010 |

Current Assets | 4420 | 3843 | 3268 | 2840 | 2727 |

Current Liabilities | 4339 | 3816 | 3138 | 3025 | 2672 |

Inventories | 2614 | 2225 | 2080 | 1802 | 1571 |

Cost of Sales | 15026 | 13761 | 11962 | 10879 | 10373 |

Trade and other receivables | 1608 | 1508 | 1172 | 999 | 869 |

Sales | 19150 | 17543 | 15437 | 14136 | 13277 |

Fixed Assets | 1772 | 1602 | 1505 | 1415 | 1384 |

Total Assets (Operating Assets) | 6192 | 5445 | 4773 | 4255 | 4111 |

Total Debt (Cur + Non_Cur) | 4625 | 4068 | 3424 | 3290 | 2969 |

Profit before Tax | 1207 | 1050 | 958 | 898 | 771 |

Finance Cost (Interest) | -342 | -299 | -270 | -247 | -207 |

EBIT | 1248 | 1096 | 1005 | 932 | 810 |

Total Equity | 1567 | 1377 | 1349 | 965 | 1142 |

Gross Profit | 4124 | 3782 | 3475 | 3257 | 2904 |

Net Profit | 865 | 751 | 688 | 651 | 564 |

1. LIQUIDITY RATIO

| YEAR | 2014 | 2013 | 2012 | 2011 | 2010 |

| Current Ratio | 1.02:1 | 1.01:1 | 1.04:1 | 0.94:1 | 1.02:1 |

| Quick Ratio | 0.42:1 | 0.42:1 | 0.38:1 | 0.34:1 | 0.43:1 |

The current ratio is a measure of liquidity of a company at a certain date, in this case, I have measured for 2010 - 2014. Companies generally aim for ratio's greater 1. Clicks thus has...