IntroductionThis report aims to help parents in their decision in which business to invest. They would like to know the safest and most financially secure company among Postie Plus Group Limited and Hallenstein Glasson. Holdings Limited. Analysis of ratios over the previous five years will be used to select the company associated with the least risk. The relevant ratio groups are liquidity, financial structure, asset management, profitability, growth and market testing. Cash flow analysis and non-financial analysis will also be considered. Company Overview PPGL is a New Zealand company established approximately 100 years ago. There are more than 80 stores nationwide, employing around 650 people. The organization provides clothing, beauty products and accessories. HGHL was established more recently in 1985 and is today considered New Zealand's leading specialty retailer. They operate approximately 110 stores worldwide, including 25 in Australia alone. This company offers both men's clothing and women's clothing.Liquidity RatiosCR looks at the proportion of current assets to current liabilities of the company. People consider 1:1 to be an acceptable CR relationship; however, a ratio of 2:1 is preferable because the amount of assets doubles the amount of liabilities. PPGL witnesses a dramatic decrease in CR. In 2009, the ratio exceeded the acceptable ratio, which was 1.79:1. In 2013, the ratio fell to 0.91:1. Investors consider this unfavorable due to the decline of 49.16%. Conversely, HGHL shows a CR of 1.92:1 in 2009 which increases to 2.40:1 in 2013. It exceeds the ideal ratio, which makes it advantageous for an investor, because it proves that the company has enough current assets to cover... ... middle of paper ...... for $9 million. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11186811HallensteinGlasson. (December 18, 2008). Hallenstein glasson holdings limited. Retrieved from http://www.hallensteinglasson.co.nz/voola/Services/FileStream.ashx?id=0edbd8b0-bbbe-4037-9b16-17d0363493c1HallensteinGlasson. (August 1, 2012). Hallenstein glasson holdings limited. Retrieved from http://www.hallensteinglasson.co.nz/voola/Services/FileStream.ashx?id=0227c5fd-f239-4ad1-8adc-21251462ef88Stuff. (January 1, 2009). "Hallenstein Glasson upgrades stores to boost sales". Retrieved from http://www.stuff.co.nz/business/172826/Hallenstein-Glasson-upgrading-stores-to-boost-salesStuff. (September 26, 2013). Hallensteins renews the strategy. Retrieved from http://www.stuff.co.nz/business/industries/9212606/Hallensteins-cuts-strategy-from-new-cloth