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