Week 2 Cases C4-4 and C5-1 Carlos Carmona January 22, 2012 Benedictine University C4-4 Please See Attached Excel Document C5-1 1. Which company was the more profitable in 2006? (Hint: Compare ROE and ROA performance for the two grocery retailers.) Concentrating first thing on a comparing ROE, the Kroger Company performed better than Safeway in 2006. This is because Kroger’s ROE was 23.9% in comparison to 16.4% for Safeway.
Financial Statement Analysis of Whole Foods Market, Inc. Darya Bechtel, Elizabeth Bishop, Kelly Fisher, Hafeza Islam, Maura Langan, and Jessica Zetnick This paper is submitted in partial fulfillment of the requirements for BUS 5473.50 Texas Woman’s University School of Management Dr. Baker November 26, 2013 Table of Contents Executive Summary 5 Company Description 6 Industry Description 7 The Economy 8 Profitability Analysis 10 Return on Assets Ratio 10 Cost of Goods Sold to Sales Ratio 11 Gross Profit Margin 11 Operating Profit Margin 12 Net Profit Margin 12 Horizontal Analysis of Income Statement 13 Vertical Analysis of Income Statement 14 Liquidity Analysis 15 Current Ratio 15 Quick Ratio 15 Accounts Receivables
Published 07/01/1995, Harvard Business School Publishing. McAfee (Ch. 6) Cases: Brandenburger, M. Costello, and J. Kou, "Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A)." Case No. 9-794-079.
Walmart Stores Walmart operates various formats of discount department stores under 53 different banners in 15 countries, including Walmart, Sam’s Club, & Asda, and is the largest retailer in the world. As of Jul 31, 2011 the company operated 9,667 total stores including 3,822 Walmart U.S., 609 Sam’s Club, and 5.236 International locations. Demand Since the Price elasticity of demand for the type of walmart’s products is very high, Walmart always succeed to be an attractive substitute store by having the lower price. This allows it to have a shift of the demand to right. Annual Sales Data | | 2011 | 2010 | 2009 | 2008 | 2007 | Net Sales (1,000′s) | $ 418,952,000 | $ 405,132,000 | $ 401,087,000 | $ 373,321,000 | $ 344,759,000 | YoY % Chg | 3.4% | 1.0% | 7.4% | 8.3% | 11.6% | Same-Store Sales Chg | -0.6% | -0.8% | 3.5% | 1.6% | 2.0% | | Walmart reported net income of $3.80 billion ($1.09 Diluted EPS) for the second quarter ended Jul 31, a 6% increase from a year ago.
Opportunities: -Expand into different regions blue collard segment- Expand into new market segments in East Region- New products- Female- “First Time Drinkers” Threats: -Aging core- customer segment- Major Domestic producers- light beer- Second tier domestic producers- Wine and spirited drinks companies- federal excise tax rate, increase in national health concern MMBC’s competitive advantage is the companies unique brand equity. Mountain Man Lager is distinctive because of its’ bitter flavor and slightly higher-than-average alcohol content. The company has made a profit since 1925 until 2005 about 80 years by having a loyal core customer base and building on its brand equity. It is sustainable as long as they keep or increase their core customer market without jeopardizing the brand image. The company’s competitive advantage is a combination of the Brand loyalty, core customer market, Brand Image, “Grass Roots” Marketing which is more effective in there region than competitors.
It showed that 2011 figure was increased by 7.3%. Coco-Cola is one of the largest and well-known beverage company all-over the world as Coca-Cola sells beverages to more than 200 countries. Coco-Cola could make a long-term investment at the current price, the valuation given the ratios to be margin in a safe way. Revenue Growth: 8.5%. Cash flow Growth: 8%.
Coca-Cola Enterprises red and white logo is the most famous symbol of the world. These companies are mass-produced sparkling and flavored waters for some time and compete in the same market for years. PepsiCo, Inc. and Coca- Cola Company is directed to all segments of the income of customers all over the world, because their products and services in parallel (www.coca-cola.com). It is P.3 a known fact that when a company goes beyond national boundaries, supply and production will be the main important thing. PepsiCo, Inc. and Coca-Cola are owned production facilities around the world.
(50616981) Barnett, N. P., Ph.D. (2008, November). The minimum drinking age debate. DATA: The Brown University Digest of Addiction Theory & Application, 27(11), 8. Retrieved from Academic Search Premier Database. (34836466) Smith, M. C., & Smith, M. D. (1999, March 12).
According to yahoo finance, the industry leader in P/E is Banco De Oro Unibank, Incorporated with a 0.00. Overall, Citigroup is a strong company that could be included as one of the top companies in the industry. Their rankings are generally in the top quarter percent. Exxon Mobil Corp. Market Capitalization: 355.70B Trailing P/E/: 12.49 Forward P/E: 11.07 PEG Ratio: 1.00 Profit Margin: 8.27% Total Cash: 12.26B Short Ratio: 1.40 Dividend Payout Ratio: 30.00% How does this compare? Exxon Mobil Corp is in the top 6 in all of the top major integrated oil and gas companies by Market Cap.
Answer: 5 Yes the Google business model and strategies proves to be very effective in having the competitive advantage over Yahoo and Microsoft. These strategies enable Google in becoming the Global market leader of search engine and advertising (Google’s Strategy in 2010). Google had experienced remarkable revenue growth in the past six years as evidenced by its financial statement. Googles management recognized that the firms revenue growth rate may go upper soon due to competitive advantages, the developing maturity of the on line advertising market and growing size of the firm. Comparison of Financial Performance of Google with Yahoo: Figure : Comparison of Operating Profit of Google & Yahoo: Source: (Google’s Strategy in 2010) The above figure depicts that both Google and Yahoo has been affected by the global economic meltdown of 2008, but Google compete well in comparison to yahoo.