Dollarama Inc. is a Canada-based company, which offers various assortment of general merchandise, consumable products and seasonal items. The Company operates through its subsidiaries, including Dollarama L.P and Dollarama International Inc. (Dollarama International). Dollarama L.P. operates the chain of stores in Canada and performs related logistical and administrative support activities. Dollarama International has retail operations in Latin America through Dollarcity, a value retailer that offers an assortment of general merchandise, consumable products and seasonal items in stores located in El Salvador and Guatemala and stores located in Colombia and Peru. Dollarama International also sells merchandise and renders services to Dollarcity. It offers products under various departments, such as Christmas, school and office, home, kitchen, food, health and beauty, cleaning, hardware, party, toys, electronics and pets. Find below Dollarama financial statement for the period 2018-2021.
Income Statement
Annual income statement item Open help content |
2018 |
2019 |
2020 |
2021 |
Total Revenue |
3,266 |
3,549 |
3,787 |
4,026 |
Cost of Revenue, Total |
1,965 |
1,965 |
2,135 |
2,258 |
Sell/General/Admin. Expenses, Total |
475 |
505 |
552 |
549 |
|
58 |
220 |
227 |
251 |
Amortization of Intangibles |
13 |
14 |
16 |
19 |
Depreciation/Amortization |
71 |
233 |
243 |
270 |
Inter/Invest Inc, Operating |
-- |
0 |
-10 |
-20 |
Unusual Expense (Income) |
-- |
0 |
-3 |
108 |
Total Operating Expense |
2,511 |
2,703 |
2,916 |
3,165 |
Operating Income |
756 |
845 |
871 |
861 |
Inter Expse,Net Non-Operat |
-40 |
-95 |
-101 |
-96 |
Net Income Before Taxes |
716 |
751 |
770 |
765 |
Provision for Income Taxes |
196 |
206 |
206 |
201 |
Net Income After Taxes |
519 |
545 |
564 |
564 |
Net Income Before Extra. Items |
519 |
545 |
564 |
564 |
Net Income |
519 |
545 |
564 |
564 |
Annual balance sheet item Open help content |
2018 |
2019 |
2020 |
2021 |
Cash and Short Term Inv |
55 |
50 |
90 |
439 |
Total Receivables, Net |
12 |
36 |
35 |
21 |
Total Inventory |
491 |
581 |
623 |
631 |
Prepaid Expenses |
7 |
16 |
12 |
10 |
Other Curr. Assets, Total |
0 |
6 |
4 |
0 |
Total Current Assets |
565 |
689 |
764 |
1,100 |
Buildings |
-- |
424 |
495 |
541 |
Land/Improvements |
-- |
65 |
70 |
70 |
Machinery/Equipment |
-- |
492 |
562 |
638 |
Construction in Progress |
-- |
30 |
0 |
0 |
Other Prop./Plant/Equip. |
1,142 |
1,208 |
1,284 |
1,345 |
Prop./Plant/Equip. - Gross |
1,142 |
2,218 |
2,411 |
2,594 |
|
-- |
-424 |
-484 |
-540 |
Prop./Plant/Equip. - Net |
1,633 |
1,794 |
1,928 |
2,054 |
|
-- |
728 |
728 |
728 |
Accum. Goodwill Amort. |
-- |
0 |
0 |
0 |
Goodwill, Net |
728 |
728 |
728 |
728 |
Intangibles, Gross |
-- |
211 |
231 |
258 |
Accum. Intangible Amort. |
-- |
-62 |
-78 |
-97 |
Intangible, Net |
143 |
149 |
153 |
162 |
Long Term Investments |
-- |
-- |
143 |
179 |
Other Long Term Assets |
-- |
-- |
-- |
0 |
Total Assets |
3,069 |
3,360 |
3,716 |
4,224 |
Accounts Payable |
-- |
80 |
65 |
67 |
Payable/Accrued |
227 |
-- |
-- |
-- |
Accrued Expenses |
-- |
79 |
91 |
96 |
Notes Payable/ST Debt |
0 |
0 |
0 |
0 |
Curr. Port. LT Dbt/Cap Ls. |
546 |
164 |
789 |
1,015 |
Dividends Payable |
12 |
13 |
14 |
15 |
Income Taxes Payable |
36 |
35 |
0 |
13 |
Other Payables |
-- |
72 |
133 |
90 |
Other Current Liabilities |
39 |
1 |
0 |
26 |
Other Curr. Lblts, Total |
87 |
120 |
147 |
143 |
Total Current Liabilities |
861 |
443 |
1,092 |
1,321 |
Long Term Debt |
1,260 |
1,891 |
1,270 |
1,044 |
Capital Lease Obligations |
1,196 |
1,246 |
1,332 |
1,402 |
Total Long Term Debt |
2,457 |
3,137 |
2,602 |
2,446 |
Total Debt |
3,003 |
3,301 |
3,392 |
3,461 |
|
83 |
97 |
114 |
122 |
Total Liabilities |
3,401 |
3,677 |
3,809 |
3,889 |
Common Stock |
416 |
408 |
449 |
485 |
Additional Paid-In Capital |
28 |
32 |
29 |
29 |
Ret. Earn.(Accum. Deficit) |
-743 |
-765 |
-574 |
-150 |
Other Equity, Total |
-32 |
7 |
4 |
-29 |
Total Equity |
-332 |
-317 |
-92 |
335 |
Total Liabilities & Shareholders' Equity |
3,069 |
3,360 |
3,716 |
4,224 |
Required
1. Calculate the following ratios for the period 2018-2021 and comment on how Covid-19 has affected this Firm. In your analysis explain strategies that Dollarama can use to recover fully.
A)
B) Total Debt ratio
C) Inventory Turnover and Days sales in Inventory
D) Receivable Turnover and Days sales in Receivable Turnover
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