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Drivers of Profitability. Acquire the financial statements of two close competitors ( like Home Depot and Lowes, for example ) . Type their financials into
Drivers of Profitability. Acquire the financial statements of two close competitors like Home Depot and Lowes, for example Type their financials into the yellow blocks in the Drivers of Profitability Download Drivers of Profitabilityclick here spreadsheet. Then, using the results of shown in the chart on that spreadsheet, determine which firm has a cost leadership competency, which firm has a differentiation competency and which firm has competitive advantage. Explain how you made each determination using the results in the spreadsheet. ENTER VALUES HERE
Your Firm Benchmark
Sales
Working Capital
Accounts Receivable
Accounts Payable
Inventory
Cash
Your Firm Benchmark Guideline Rule
Working Capital Turnover #DIV #DIV Higher is better
Accounts Receivable Accounts Payable Turnover #DIV #DIV IF POSITIVE higher is better; IF NEGATIVE lower is better in general
Cash Turnover #DIV #DIV Higher is better in general
Inventory Turnovers #DIV #DIV Higher is better in general
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