FINANCIAL ANALYSIS OF SEARS VS. WAL-MART

FINANCIAL ANALYSIS OF SEARS VS. WAL-MART Table Content Background Analysis------------------------------------------------ 3 Financial Ratio analysis--------------------------------------------- 4 Weighted Average follow of pileus (WACC)--------------------- 12 Working Capital Management--------------------------------------20 Dividend Policy and tax income Treatment------------------------------- 23 Conclusion------------------------------------------------------------24 Background Analysis Wal-Mart Wal-Mart Stores, Inc., incorporated in 1969, is an multinational seller. In the United States, the Company operated 1,568 discount stores, 1,258 Super centers, 525 SAMs CLUBs and 49 neighbourhood Markets as of January 31, 2003. Wal-Marts greatest advantage is having great dicker top executive with suppliers to get the lowest price so they can lean it on to the customer. To further this, Wal-Mart is continuing to turn away prices, offer newer and up to date products through their global suppliers sourcing ne bothrk. Sears In 1886 Sears began the R.W. Sears Watch Company in Minneapolis. Sears, Roebuck and Co was formally formed in 1893. Sears is a direct retailer of app bel, crustal plate and automotive products and services, with annual revenue of much than $40 billion. Sears operated 863 mall-based retail stores, most with co-located Sears Auto Centers, and an additional 1,200 retail locations including hardware, outlet, tire and barrage fire stores as well as independently owned stores, in the beginning in smaller and rural markets. The two retailers, Sears, Roebuck and Co. and Wal-Mart Stores, Inc., have a very similar value for harvest-time on equity in the recent fiscal years.

We are using the past 5 years information to study the strategies and accounting policies for each company, and wear out understand the companies performance and promise the companies trend in the emerging for each firm. This case provides a good introduction regarding the gang of such information to pee a powerful dig for financial statement analysis. Profitability analysis Exhibit 1-1 carnal knowledge of profitability ratios         2002         2001         2000         1999         1998         SEARS         WMT         SEARS         WMT         SEARS         WMT         SEARS         WMT         SEARS         WMT ROS ... If you want to get a full essay, process it on our website: Order Essay.net

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