Canadian Tire Corporation, Limited is one of Canada’s best-known retailers. Obtain a copy of Canadian Tire’s financial statements for each of the years ended December 30, 2017, and December 31, 2016, through SEDAR (www.sedar.com) or on the company’s website. To answer the following questions, you may also want to consult the 10-year financial review that is supplementary information in the 2016 annual report.

Instructions

a. Data Analytics How significant is Canadian Tire’s investment in property, plant, and equipment, including any investment property, compared with its total investment in assets? Compare this with sample companies in other industries, such as financial services (AGF Management Limited), real estate management and development (Brookfield Asset Management Inc.), and technology (The Stars Group Inc.). Comment.

b. Calculate Canadian Tire’s total asset turnover for fiscal years 2017, 2016, and 2015.

c. Calculate the company’s profit margin for the same three years.

d. Calculate the company’s return on assets for the same three years by using the ratios calculated in parts (b) and (c) above.

e. Based on your calculations in part (d), suggest ways in which Canadian Tire might increase the return that it earns on its investment in assets.