Find 2 public companies in Canada

Compute any 3 ratios for the companies.

Compare the ratios between the two companies and the industry.

Nutrien1

Current Assets 2022= $ 16,342

Current Liabilities 2022= $ 14,280
Total Liabilities 2022= $ 28,723
Income from operation 2022= $ 10,809
Total Assets 2021= $ 49,954
Total Assets 2022= $ 54,586

• Current Ratio

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 16,342

Current Ratio = = = 1,14
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 14,280

• Debt ratio

𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 28,723

𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜 = = = 0,53
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 54,584

• Return on Assets

𝑇𝑜𝑡𝑎𝑙 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 2021 + 𝑇𝑜𝑡𝑎𝑙 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 2022

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑠𝑡𝑠 =
2
49,954 + 54,586
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑠𝑡𝑠 = = $ 52,270
2

1
Nutrien Ltd: https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo
=00044140&issuerType=03&projectNo=03495141&docId=5363868
 𝐼𝑛𝑐𝑜𝑚𝑒 𝑓𝑟𝑜𝑚 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 10,809
𝑅𝑂𝐴 = = = 20,67%
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 52,270
Ag Growth International2

Current Assets 2022= $ 642,846

Current Liabilities 2022= $ 412,217
Total Liabilities 2022= $ 1,380,381
Income from operation 2022= $ 465,912
Total Assets 2021= $ 1,593,654
Total Assets 2022= $ 1,626,061

• Current Ratio

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 642,846

Current Ratio = = = 1,55
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 412,217

• Debt ratio

𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 1,380,381

𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜 = = = 0,85
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 1,626,061

• Return on Assets

𝑇𝑜𝑡𝑎𝑙 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 2021 + 𝑇𝑜𝑡𝑎𝑙 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 2022

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑠𝑡𝑠 =
2
1,593,654 + 1,626,061
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑠𝑡𝑠 = = $ 1,609,857.5
2
𝐼𝑛𝑐𝑜𝑚𝑒 𝑓𝑟𝑜𝑚 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 465,912
𝑅𝑂𝐴 = ∗ 100 = ∗ 100 = 28,94%
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 1,609,857,5

2
Ag Growth International Inc.
https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00028540&issuerType=03&p
rojectNo=03500853&docId=5372839
Comparing Ratios:3
Industry Benchmark: NAICS 11 - Agriculture, forestry, fishing, and hunting

Ag Growth
Ratios Industry Nutrien Ltd
International

Current ratio 1.20 1,14 1,55

Debt ratio 0.60 0,53 0,85

Return on total assets (%) -4.50 20,67 28,94

• Current ratio: Comparing both companies, Ag Growth has better ratio than
Nutrien and the Industry, Ag Growth has 1,55 dollar in current assets to meet each
dollar in current debts that they have, on the other hand Nutrien has a current ratio a
little lower that the industry.
• Debts ratio, Both companies have the same behavior they had in the current ratio,
Nutrien is a few point below the industry average and Ag Growth is above the
average. In this case Nutrien Ltd has for every dollar in Assets 0,53 dollar in
liabilities, that means that in general terms Nutrien Ltd, has better scenario to fulfil
whit their debts.
• Return on total assets (%): In general both companies are doing better than the
industry, since, for every dollar in asset, Nutrien generated 0,206 dollars in profit,
and Ag Growth International generated 0,289 dollar in profit.

3
https://ised-isde.canada.ca/app/ixb/fpd-dpf/report