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  • Retail Marketing Case Study Analysis

    Încărcat de

    Pooja Singh
    961 vizualizări10 pagini
    This document compares the financial performance of Sears Roebuck & Co. and Walmart Stores between 1995-1998. Several financial ratios are presented including current ratio, debt to equity ratio, leverage ratio, return on investment, net income as a percentage of total revenue, and comparative cash flows. The analysis of these ratios shows that Walmart was generally in a stronger financial position than Sears over this time period, with higher current ratios, lower debt levels, higher returns on investment, and greater increases in cash flows. The conclusion is that Walmart performed better financially according to these metrics between 1995-1998 compared to Sears Roebuck & Co.

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    This document compares the financial performance of Sears Roebuck & Co. and Walmart Stores between 1995-1998. Several financial ratios are presented including current ratio, debt to equity ratio, leverage ratio, return on investment, net income as a percentage of total revenue, and comparative cash flows. The analysis of these ratios shows that Walmart was generally in a stronger financial position than Sears over this time period, with higher current ratios, lower debt levels, higher returns on investment, and greater increases in cash flows. The conclusion is that Walmart performed better financially according to these metrics between 1995-1998 compared to Sears Roebuck & Co.

    Drepturi de autor:

    Attribution Non-Commercial (BY-NC)
    Descărcați ca PPTX, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    961 vizualizări10 pagini

    Retail Marketing Case Study Analysis

    Încărcat de

    Pooja Singh
    This document compares the financial performance of Sears Roebuck & Co. and Walmart Stores between 1995-1998. Several financial ratios are presented including current ratio, debt to equity ratio, leverage ratio, return on investment, net income as a percentage of total revenue, and comparative cash flows. The analysis of these ratios shows that Walmart was generally in a stronger financial position than Sears over this time period, with higher current ratios, lower debt levels, higher returns on investment, and greater increases in cash flows. The conclusion is that Walmart performed better financially according to these metrics between 1995-1998 compared to Sears Roebuck & Co.

    Drepturi de autor:

    Attribution Non-Commercial (BY-NC)
    Descărcați ca PPTX, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    din 10

    Sears Roebuck & Co. vs.

    Walmart Stores
    Case Analysis (Group 4: MBA-PR)

    Background to the Case

    Sears Roebuck & Co


    Founded in 1891 Made great strides in 1990s to revive the fortunes ROE of 22% Offered flexible payment facility : exclusive Sears Credit Card

    Wal Mart Stores

    Founded in 1962 from the Balance Sheet of the respective companies of US retail industry which Acknowledged powerhouse to Compare and Identify ROE of 20% DID Offered the facility of Credit card with their Logo, but did not have a propriety Credit Card

    Financial Comparision

    CURRENT RATIO=Current Assets/Current Liabilities RATIO Indicates ability to pay companys obligations Sears
    1.943128562 (1997) 1.902809365 (1996)

    Wal - Mart
    1.338312586 (1998) 1.642146573 (1997)

    atio is near to 1.5 (general acceptable value), the company has a good capacity to value, it clearly indicates that the Company is using its liquidity to grow.

    Financial Comparision
    DEBT TO EQUITY RATIO =Total Liability/Shareholder Equity Indicates what portion of Equity & debt a company is using to finance its assets. Sears Wal - Mart

    5.601842375 (1997) 6.313852376 (1996)

    0.781494893 (1998) 0.639153007 (1997)

    o Equity Ratio is Less than 1, which indicates that their assets are financed wit

    Financial Comparision

    LEVERAGE RATIO=Long Term Debt/Shareholder RATIO Equity Indicates how much debt a company has. Sears
    2.229785056 (1997) 2.46107179 (1996)

    Wal - Mart
    0.38863968 (1998) 0.449687919 (1997)

    atio is less than Sears & Co., which indicates that Walmart is comparatively lower

    Financial Comparision
    RETURN ON INVESTMENT= Net INVESTMENT Income/Shareholder Equity Indicates how much money the company is making for the Investors Sears Wal - Mart

    0.202661208 (1997) 0.2570273 (1996)

    1.905945946 (1998) 0.178265181 (1997)

    & Co. have their ROI decrement from 1996 to 1997, whereas Walmart has a considerab

    Financial Comparision

    NET INCOME AS A % OF TOTAL REVENUE = (Net Income/Total Revenue) * 100 Sears


    2.876791941 (1997) 3.339113073(1996)

    Wal - Mart
    2.955598957 (1998) 2.878185688 (1997)

    ent, Sears has a considerable decrement from 1996 to 1997, Walmart shows a consist

    Financial Comparision

    COMPARATIVE STUDY OF NET INCREASE OR DECREASE IN CASH & CASH EQUIVALENTS Sears
    -302(1997) 54(1996) 58 (1995)

    Wal - Mart
    564 (1998) 800 (1997) 38 (1996)

    is evident, Sears has a considerable DECREASE in Cash & Cash Flow as compared to

    Financial Conclusion

    As is evident, the above Financial Ratios clearly indicate that WALMART is financially performing Better than SEARS ROEBUCK & CO.

    Thank You
    Group Members : Aastha Singh Juanita Jocelyn Mansi Bagga Pooja Singh Ruchi Kothari Sreeparna Maitra

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