As to the avge days to collect receivables chow

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and opened two new stores in Hong Kong in the last year. As to the Avge Days to Collect Receivables, Chow collect much more faster than TSL, which due to the versatile sales channels (Retail channel, wholesale channel and online channel) of the Chow and it opened 50 new shops in the last year. All of these factors lead to the quicker turnover of Receivables, which is go consistent with the reality of only 60 days to recive the cash for Chow. The same reason applied to the shorter inventory holding period compared with TSL. While with respect to the Avge Days to Pay Payables, TSL get a huge benefit from it owing the good relationship with suppliers. Rosy Blue Hong Kong Limited, one of the Group’s five largest suppliers, is a subsidiary of Prime Investments S.A., which is a preference shareholder of Partner Logistics Limited (the Company’s controlling shareholder).
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Analysis Analysis Analysis of of of of leverage leverage leverage Chow Chow Debt to Equity Ratio 0.023 0.022 0.082 0.106 FFO to Total Debt 0.298 7.095 3.444 1.560 CFO to Total Debt 0.345 -8.050 0.847 0.612 Current Ratio 2.699 3.514 2.993 3.334 Quick Ratio 0.445 0.403 0.452 0.532 EBIT Interest Coverage 35.263 39.882 28.703 28.460 EBITDA Interest Coverage 35.263 39.882 28.703 28.460 TSL TSL Debt to Equity Ratio 0.292 0.233 0.245 0.279 0.358 FFO to Total Debt 1.209 1.289 1.474 0.936 CFO to Total Debt 0.756 0.325 (0.317) 0.568 Current Ratio 1.492 1.802 1.846 2.018 1.723 Quick Ratio 0.319 0.497 0.506 0.441 0.286 EBIT Interest Coverage 15.718 25.551 51.331 (15.435) 24.582 EBITDA Interest Coverage 19.653 34.980 62.739 (18.518) 30.399 From above table, its apparent to see that TSL borrow more debt than Chow. Actually, the Interest-bearing bank borrowings of Chow in the last year decrease dramatically (from HK$1,299,432 to HK$764,314), which lead to the reduce of financial costs(from HK$47,038 TO hk$39,162) .while TSL issue a great deal of bonds to collect money to support the expansion plan. Further, for TSL debt creates value, because the spread between the RNOA and NBC is higher than Chow.
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