4. Log onto the S&P Market Insight Web site, www.mhhe.com/edumarketinsight. Click on “Company,” which is the first box below the Market Insight title. In this problem we are going to compare the differences in working capital policy between Nordstrom Inc. (JWN), Target (TGT), and Wal-Mart (WMT). These companies all use different retail models to sell goods to consumers. Type Nordstrom’s ticker symbol “JWN” in the box and click on Go. Scroll down the left margin and click on “Excel Analytics”

and then go to “Quarterly Income Statements,” and click on the first one.

1.. Record the sales figure or print the report for the six quarters and determine if there is any seasonal sales pattern.

Return to the previous menu and now click on the “Quarterly Ratio Report.”
2.. Examine the activity ratios (asset utilization ratios in Chapter 3) and analyze Nordstrom for efficiency. Also note the profitability ratios.
3.. Repeat the process for Target and Wal-Mart.
4.. Now compare the three companies and determine which has the most efficient model for working capital management.
5.. Given that efficient working capital management should lead to better profitability, write up a short analysis of the three companies’ working capital management and how it might affect each company’s profitability.