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Question: Discuss about the Financial Condition of the ISETAN Singapore. Answer: Introduction: This report has been prepared to present the financial condition of the ISETAN (SINGAPORE) LTD and Metro Holdings limited to analyze the financial performance and the financial position of both the companies. This report depict that it becomes easy for the user to identify and evaluate the best company on the basis of financial tools. Both of these companies are performing its business into property and retail segment. The market share of both the companies is competitive. Company overview: The background, mission, vision operations etc of both the companies have been analyzed. The description of both the companies is as follows: ISETAN Singapore Ltd. ISETAN limited is an international company which has its headquarter into Singapore. The main operations of this company are operating the supermarkets, operational department and it trades into the general merchandise. This company administers its functions into two departments which are property segment and retail segment. This company manages various property and the operations in the Singapore. Currently, this company is managing various activities to enhance the market share and manage the performance of the company (Home, 2017). LTD Metro Holdings Ltd. METRO HOLDINGS limited is an international company which has its headquarter into Singapore. The main operations of this company are property development and investment. This company administers its functions into two departments which are property segment and retail segment. This company manages various property activities and the retail operations in the market of Singapore (Home, 2017). Currently, this company is managing various activities to enhance the market share and manage the performance of the company. Balance sheet and income statement: Balance sheet and income statement of both the companies have been analyzed to administer the performance and the financial position of both the companies. The details of financial statement of both the companies are as follows: Metro Holdings Ltd: Metro holdings limiteds financial statement has been analyzed. Form the income statement of the company; it has been found that the total revenues of the company have been enhanced form 2015 in 2016. The revenue of the company was SGD 145826000 in 2015 which has been enhanced by 6.01% in 2016. Further, the gross profit of the company has also been enhanced by 35.99% but the net profit of the company has been lowered from 2015 (Garrison, Noreen, Brewer McGowan, 2010). Operating expenses of the company has been improved and they have impacted over the operating income of the company. Further, the balance sheet of the company has been analyzed and it has been found that the various changes have taken place into the performance of the comapny as well. Total current assets of the company have been improved by 0.39% from 2015 whereas the total current liabilities of the company have been lowered by 36.54% in 2016 (Bloomberg, 2017). The total assets of the comapny has been reduced by 6.58% in 2016 due to the changes into the long term position of the company whereas the total liability and equity of the company has also been reduced by 40.99% and -0.12% which depict about huge changes into the financial position of the company. ISETAN Singapore Ltd. Further, the ISETAN (SINGAPORE) limiteds financial statement has been analyzed. Form the income statement of the company; it has been found that the total revenues of the company have been lower form 2015 in 2016. The revenue of the company was SGD 302178000 in 2015 which has been lowered by 2.05% in 2016. Further, the gross profit of the company has also been lowered by 2.5% but the net profit of the company has been improved far better from 2015 (Garleanu Pedersen, 2007). Operating expenses of the company has been improved and they have impacted over the operating income of the company. Further, the balance sheet of the company has been analyzed and it has been found that the various changes have taken place into the performance of the comapny as well. Total current assets of the company have been improved by 3.53% from 2015 whereas the total current liabilities of the company have been lowered by 16% in 2016. The total assets of the comapny has been reduced by 3.03% in 2016 due to the changes into the long term position of the company whereas the total liability and equity of the company has also been reduced by 12.06% and -0.21% which depict about huge changes into the financial position of the company (Reuters, 2017). Ratio analysis: Further, the study has been done over the ratio analysis of both the company to analyze and evaluate the best comapny in terms of the investment and financial position. The study of ratio analysis of both the companies is as follows: Metro Holdings Ltd: Ratio analysis study over METRO HOLDINGS Limited depict about the financial position of the company on various basis such as liquidity, profitability, efficiency and solvency. Liquidity ratios of the company depict that the liquid position of the company is not at all good. The debt position of the company is quite good but the comapny is suggested to reduce the level of the current assets to manage the cost of the company. Further, the profitability ratio of the company depict that the profitability ratio of the company has been lowered but still the net profit margin of the company is very higher and depict about the good performance of the company in the market (Davies Crawford, 2011). Further, the efficiency and solvency position of the company depict that the company has lowered the days of inventory turnover and accounts receivable to manage the extra cost and the cash conversion cycle of the company. This analysis depict that the performance of the company is getting better (Morningstar, 2017). Lastly, the solvency position of the company depict the company is required to enhance the level of the debt to reach over the position of optimal capital structure. ISETAN Singapore Ltd. Ratio analysis study over ISETAN (SINGAPORE) Limited depict about the financial position of the company on various basis such as liquidity, profitability, efficiency and solvency. Liquidity ratios of the company depict that the liquid position of the company is quite good. The debt position of the company is quite good and the cost of the company is also managed by the company. Further, the profitability ratio of the company depict that the profitability ratio of the company has been enhanced but still the net profit margin of the company is very lower and depict about the bad performance of the company in the market (Davies Crawford, 2011). Further, the efficiency and solvency position of the company depict that the company has enhanced the days of inventory turnover and accounts receivable to manage the sales and the production of the company (Morningstar, 2017). This analysis depict that the performance of the company is getting better. Lastly, the solvency position of the company depict the company is required to enhance the level of the debt to reach over the position of optimal capital structure. Findings and analysis: Through the above analysis, it has been found that both of these companies are better from each other in different activities. The ratio analysis study depict that the liquidity position of ISETAN is better than METRO ltd whereas in profitability ratios, metro limited is performing well. Further, the solvency and efficiency ratios depict that the performance of both the companies are average and both the companies are required to make few changes into its policies. Conclusion: According to the evaluation, it is recommended to the investors to invest into the METRO HOLDINGS limited for the short term and in ISETAN limited for long term .this would assist the investors to get more return. References: Bloomberg. (2017). METRO HOLDINGS LIMITED. Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=878812 available as on 9th Nov 2017. Davies, T. Crawford, I., (2011).Business accounting and finance. Pearson. Garleanu, N. B., Pedersen, L. H. (2007).Liquidity and risk management(No. w12887). National Bureau of Economic Research. Garrison, R. H., Noreen, E. W., Brewer, P. C., McGowan, A. (2010). Managerial accounting.Issues Home. (2017). ISETAN SINGAPORE LIMITED. Retrieved from https://www.isetan.com.sg/ available as on 9th Nov 2017. Home. (2017). METRO HOLDINGS LIMITED. Retrieved from https://www.metroholdings.com.sg/ available as on 9th Nov 2017. Morningstar. (2017). ISETAN SINGAPORE LIMITED. Retrieved from https://financials.morningstar.com/cash-flow/cf.html?t=I15region=sgpculture=en-US available as on 9th Nov 2017. Morningstar. (2017). METRO HOLDINGS LIMITED. Retrieved from https://financials.morningstar.com/income-statement/is.html?t=M01region=SGPculture=en_US available as on 9th Nov 2017. Reuters. (2017). ISETAN SINGAPORE LIMITED. Retrieved from https://www.reuters.com/finance/stocks/companyProfile/ISETbi.SI available as on 9th Nov 2017