Finance Course Project Essay

1835 Words May 28th, 2013 8 Pages
Course Project Final
Dollar Tree and Dollar General
Horizontal and Vertical Analysis

Cynthia Bates
Devry University
Finance 382
Professor Bankston-Bradshaw
April 19, 2013

Course Project Final
Dollar Tree and Dollar General
Vertical and Horizontal Analysis

I. General information about companies II. Current events III. Relevant ratios IV. Spreadsheets V. Significant assets and liability items, comments on revenue and profitability VI. Relevant ratios and vertical analysis discussion VII. Brief analysis of horizontal analysis VIII. Company objectives IX. Three most important ratios X. Industry comparison XI. References

I. General information about the companies
For my course
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They have a very good balance between their debt financing and the assets they have on hand (dollartree.com, 2013). With a debt/equity ratio of 65.10% in 2013, this puts them in a good position for using the free cash flow they have to research and see what areas they could make improvements in. It seems that the most significant assets that Dollar Tree has is in their inventories. This is the largest part of their assets. They also have some intangible assets that account for about 35% of their total assets. The liabilities that Dollar Tree has are in the form of accounts payable. They do not have very much long term debt. Their long term debt accounts for less than 10% of the total liabilities.
Dollar General
Dollar General has a lot of revenue. In 2013, they reported $16,200,000. The main assets for this company are their inventory. In 2013, their inventory assets were recorded at $2,397,200. No one can argue the fact that they are not making money. Even though they are making money, Dollar General has a high debt/equity ratio (dollargeneral.com, 2013). This is due in part to the expansion of their business into the supermarket industry. With going into this industry, it means having to use debt to open up new stores and all the costs associated with opening a new business in a different industry. While the debt is high, they still have a lot of revenue each year. I do not see having a lot of debt for Dollar General

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