Question 3 O pts Retail Companies E and Fare retailers. One is a leading e-commerce company that sells a broad range of products including media (books, music, and videos) and electronics, which together account for 92% of revenues. One third of revenues are international and 20% of sales come from third-party sellers (i.e., sellers who transact through the company's website to sell their own products rather than those owned by the company). A growing portion of operating profit comes from the company's cloud computing business. With its desire to focus on customer satisfaction, this company has invested considerably in improving its online technologies. The other company is a leading retailer in apparel and fashion accessories for men, women, and children. The company sells mostly through its upscale brick-and-mortar department stores. Hints: - Which retailer needs more/less physical assets? (PP&E). - Which companies pay dividends? Leading e-commerce company is E, Leading retailer in apparel and fashion is F O Leading e-commerce company is F, Leading retailer in apparel and fashion is E Bees ty tel:(12)%2045%200%200%200 8 7 15 9 5 7 4 0 9 A 5 3 2 3 14 14 " 0 3 2 5 19 62 4 0 25 8 7 6 46 19 0 0 3 33 100 30 10 16 0 56 33 0 7 3 25 4 39 49 7 0 4 4 15 53 0 9 23 100 2 18 0 3 23 17 0 39 21 100 Computers I 14 41 10 18 1 16 5 9 31 84 8 4 * 56 0 3 2 2 2 9 100 100 35 64 07 0 Newspapers K L 25 35 9 14 0 2 2 4 36 56 25 23 4 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 " 10 42 75 74 0 1 28 1 13 8 100 100 Pharmaceutic O 1 13 5 11 3 10 2 2 11 35 * 3 23 0 10 u " 85 26 1 6 100 100 70 2 100 1 1 100 8 12 100 4 100 6 7 100 7 12 4 Current Liabilities-Total ASSETS (%) Cash & ST Investments Receivables Inventory Current Assets Other Current AssetsTotal Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total ASS LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities Other Current Long-Term Debt Deferred Taxes LiabilitiesOther LiabilitiesTotal Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R & D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Beta Price/Earnings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio 9 > 4 4 7 8 21 21 32 JA 9 4 4 66 66 34 100 0 11 17 1 0 9 0 3 29 71 100 5 7 7 19 17 50 3 12 83 17 1- 100 5 1 8 13 4 4 0 7 24 76 100 31 J 5 15 52 wa 13 2 14 80 20 100 17 0 20 38 wo 36 JO 0 U 15 89 11 100 2 2 4 4 + 8 15 15 14 1 1 1 18 47 53 100 10 5 38 53 We 63 0 U 43 159 (59) 100 14 28 20 18 o 8 4 4 59 41 100 4 4 0 20 24 0 0 0 5 29 71 100 4 8 12 23 10 10 19 0 U 32 66 34 100 6. 6 0 12 18 o 0 o 0 28 46 54 100 5 3 24 33 13 0 0 34 80 20 100 1 1 2 8 11 1 62 02 12 3 88 2 5. 3 19 26 20 16 16 14 6 63 37 100 4 0 19 23 22 0 13 59 41 41 100 12 100 100 (39) ( 61 (32) 0 100 ( (48) 52 ( (36) 0 100 (26) 74 (23) 0 100 (60) 40 (6) 100 100 (101) (70) (1) 30 0 100 (60) 40 0 0 5 0 3 32 100 100 100 (81) (74) (67) 19 26 33 (1) (7) (19) 00 (4) (12) 0 0 0 0 0 (0) (0) 18 14 2 (6) 0 (0) (4) (4) 0 (0) 8 15 1 0 (1) (3) 0 0 2 15 1 100 100 (63) (63) 36 37 (28) (12) 0 0 0 (13) 0 0 0 8 13 (1) 0 7 7 8 (3) (3) 0 0 0 47 0 0 30 1 0 0 16 0 (0) 16 (6) 0 10 100 (69) 31 (12) (13) 0 0 6 6 0 0 0 6 (2) 0 4 100 (39) 61 45 0 4 0 12 (2) (4) 6 (2) 0 4 4 0 (5) 0 0 (5) (12) 19 (2) 14 0 17 1 29 100 100 (23) (24) 77 76 (26) (33) (24) 0 0 (23) 0 0 25 19 (15) (0) (12) (1) 14 (1) (2) (0) 0 (3) 12 (5) (5) 16 (1) 3 18 (6) 0 11 2 44 (14) 0 30 31 (8) 0 23 23 1 0 (4) 19 0 11 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 19.2 6.4 197.5 1.15 59.8 0.3 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10,9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.49 0.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 Quick Ratio 8.5 3.9 5.9 13.0 2.2 17.6 5.8 0.6 4.6 9.3 2.5 25.3 2.4 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nm 8.8 13.1 0.6 14.1 62.8 13.6 10.8 5.3 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 2.3 4.3 1.6 5.9 2.5 22.0 7.6 58.9 ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT Total Debt/Total Assets (%) LT Debt/Sharcholders' Equity (%) Interest Coverage DUPONT ANALYSIS Net Profit Margin %) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 87.7 54.6 501.9 23.2 1.7 10.6 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 4.0 0.6 8.1 11.1 0.8 46.0 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) (14.8) Question 3 O pts Retail Companies E and Fare retailers. One is a leading e-commerce company that sells a broad range of products including media (books, music, and videos) and electronics, which together account for 92% of revenues. One third of revenues are international and 20% of sales come from third-party sellers (i.e., sellers who transact through the company's website to sell their own products rather than those owned by the company). A growing portion of operating profit comes from the company's cloud computing business. With its desire to focus on customer satisfaction, this company has invested considerably in improving its online technologies. The other company is a leading retailer in apparel and fashion accessories for men, women, and children. The company sells mostly through its upscale brick-and-mortar department stores. Hints: - Which retailer needs more/less physical assets? (PP&E). - Which companies pay dividends? Leading e-commerce company is E, Leading retailer in apparel and fashion is F O Leading e-commerce company is F, Leading retailer in apparel and fashion is E Bees ty tel:(12)%2045%200%200%200 8 7 15 9 5 7 4 0 9 A 5 3 2 3 14 14 " 0 3 2 5 19 62 4 0 25 8 7 6 46 19 0 0 3 33 100 30 10 16 0 56 33 0 7 3 25 4 39 49 7 0 4 4 15 53 0 9 23 100 2 18 0 3 23 17 0 39 21 100 Computers I 14 41 10 18 1 16 5 9 31 84 8 4 * 56 0 3 2 2 2 9 100 100 35 64 07 0 Newspapers K L 25 35 9 14 0 2 2 4 36 56 25 23 4 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 " 10 42 75 74 0 1 28 1 13 8 100 100 Pharmaceutic O 1 13 5 11 3 10 2 2 11 35 * 3 23 0 10 u " 85 26 1 6 100 100 70 2 100 1 1 100 8 12 100 4 100 6 7 100 7 12 4 Current Liabilities-Total ASSETS (%) Cash & ST Investments Receivables Inventory Current Assets Other Current AssetsTotal Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total ASS LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities Other Current Long-Term Debt Deferred Taxes LiabilitiesOther LiabilitiesTotal Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R & D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Beta Price/Earnings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio 9 > 4 4 7 8 21 21 32 JA 9 4 4 66 66 34 100 0 11 17 1 0 9 0 3 29 71 100 5 7 7 19 17 50 3 12 83 17 1- 100 5 1 8 13 4 4 0 7 24 76 100 31 J 5 15 52 wa 13 2 14 80 20 100 17 0 20 38 wo 36 JO 0 U 15 89 11 100 2 2 4 4 + 8 15 15 14 1 1 1 18 47 53 100 10 5 38 53 We 63 0 U 43 159 (59) 100 14 28 20 18 o 8 4 4 59 41 100 4 4 0 20 24 0 0 0 5 29 71 100 4 8 12 23 10 10 19 0 U 32 66 34 100 6. 6 0 12 18 o 0 o 0 28 46 54 100 5 3 24 33 13 0 0 34 80 20 100 1 1 2 8 11 1 62 02 12 3 88 2 5. 3 19 26 20 16 16 14 6 63 37 100 4 0 19 23 22 0 13 59 41 41 100 12 100 100 (39) ( 61 (32) 0 100 ( (48) 52 ( (36) 0 100 (26) 74 (23) 0 100 (60) 40 (6) 100 100 (101) (70) (1) 30 0 100 (60) 40 0 0 5 0 3 32 100 100 100 (81) (74) (67) 19 26 33 (1) (7) (19) 00 (4) (12) 0 0 0 0 0 (0) (0) 18 14 2 (6) 0 (0) (4) (4) 0 (0) 8 15 1 0 (1) (3) 0 0 2 15 1 100 100 (63) (63) 36 37 (28) (12) 0 0 0 (13) 0 0 0 8 13 (1) 0 7 7 8 (3) (3) 0 0 0 47 0 0 30 1 0 0 16 0 (0) 16 (6) 0 10 100 (69) 31 (12) (13) 0 0 6 6 0 0 0 6 (2) 0 4 100 (39) 61 45 0 4 0 12 (2) (4) 6 (2) 0 4 4 0 (5) 0 0 (5) (12) 19 (2) 14 0 17 1 29 100 100 (23) (24) 77 76 (26) (33) (24) 0 0 (23) 0 0 25 19 (15) (0) (12) (1) 14 (1) (2) (0) 0 (3) 12 (5) (5) 16 (1) 3 18 (6) 0 11 2 44 (14) 0 30 31 (8) 0 23 23 1 0 (4) 19 0 11 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 19.2 6.4 197.5 1.15 59.8 0.3 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10,9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.49 0.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 Quick Ratio 8.5 3.9 5.9 13.0 2.2 17.6 5.8 0.6 4.6 9.3 2.5 25.3 2.4 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nm 8.8 13.1 0.6 14.1 62.8 13.6 10.8 5.3 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 2.3 4.3 1.6 5.9 2.5 22.0 7.6 58.9 ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT Total Debt/Total Assets (%) LT Debt/Sharcholders' Equity (%) Interest Coverage DUPONT ANALYSIS Net Profit Margin %) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 87.7 54.6 501.9 23.2 1.7 10.6 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 4.0 0.6 8.1 11.1 0.8 46.0 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) (14.8)