Sears, Roebuck and Co. Vs. Wal-Mart Stores, Inc Problem: Don Edwards, a recent MBA graduate has been asked to analyze the financial performance of Sears and Wal-Mart. Although Wal-Mart is the industry powerhouse, its 20% return on equity (ROE) lags behind that of Sears’ 22%. Analysis: Wal-Mart operates fewer stores than Sears but is ahead in terms of total selling area by a ratio of 3.4:1. Between 1995 and 1997, Sears’ retail store revenue per selling square foot was not only lower
2006 GREGORY S. MILLER CHRISTOPHER NOE Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Don Edwards, having just earned an MBA, decided to take a job as an analyst with a prestigious investment bank. He was assigned to a team that followed retail companies. His first task was to prepare a report that contrasted the financial performance of Sears and Wal-Mart. Although WalMart was the acknowledged powerhouse of the U.S. retailing industry, Sears had made some great strides in the 1990s to
Questions: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Answers must be posted to Compass. You may work in groups of no more than four people. Be sure to remember to submit ALL names and UINs on the assignment. 1. How do the retailing strategies of Sears and Wal-Mart differ? How does each firm operate their business/attempt to create value? The major difference in these two companies’ retailing strategies, according to their filings in 2014, lies in the ways they expand their sales. Wal-Mart
Sears, Roebuck and Co. started formally as a company in 1893, but its history started in 1886 with Richard Sears who created R.W. Sears Watch Company selling watches to increment his income. In 1887, he hired Alvah C. Roebuck a watch repairman, both formed Sears, Roebuck and Co; by 1888, they offered their first catalog featuring only watches and jewelry. During this time, farmers in rural America were selling crops for cash and buying what they needed from rural general stores. In 1890s, wholesale
OF SEARS VS. WAL-MART Table Content Background Analysis------------------------------------------------ 3 Financial Ratio analysis--------------------------------------------- 4 Weighted Average Cost of Capital (WACC)--------------------- 12 Working Capital Management--------------------------------------20 Dividend Policy and Tax Treatment------------------------------- 23 Conclusion------------------------------------------------------------24 Background Analysis Wal-Mart Wal-Mart Stores
Case：Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Financial Statement Case analysis 1． How do the retailing strategies of Sears and Wal-Mart differ? How does each firm operate their business/attempt to create value? The two companies differs in retailing strategy in two ways. 1. Credit sales boost sales greatly in Sears, not in Wal-mart Since 1992 when Arthur C. Martinez was brought on board to head Sears’s retailing operations, credit sales, especially through the use of the
3. What ratios are most important in assessing current and predicting future value creation for Sears? For Wal-Mart? 4. How useful are the ratios in evaluating the current performance of each of the two companies? 5. How useful are financial ratios in comparing the relative performance of these two companies? Financial Statement Analysis Case Discussion Questions CASE: The Loewen Group, Inc 1. How was the Loewen Group able to grow explosively for the first half of the 1990s? What were
Walmart From Wikipedia, the free encyclopedia Wal-Mart Stores, Inc. (NYSE: WMT (http://www.nyse.com/about/listed/lcddata.html?ticker=wmt) ), branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailer
Strategic Financial Management University of Phoenix Finance for Managerial Decision Making / FIN 554 Professor Greg Garay January 17, 2006 Table of Contents Abstract 3 Strategic Financial Management ..4 Working Capital Management .4 The Kmart Corporation Debacle ..5 Long-Term and Short-Term Strategies .. 6 Financial Performance
Home Depot vs. Lowe’s Financial Analysis And Comparison AIM 6344 Group Members Cenk Tolunay Yan Wang Hong Ma Yuhong Zhang 1) Background 1.1 The Home Depot The Company was founded in 1978 in Atlanta, Georgia and has since become the world's largest home improvement retailer, operating more than 1,500 stores (Home Depot, EXPO, and other subsidiary companies) across North America. Home Depot caters to both do-it-yourselfers and professional customers who serve the home improvement construction