Table 3-8 contains the financial results for Walmart and Macy's for 2012.
1.Evaluate the financial performance of each company based on the various metrics discussed in Section 3.1, such as ROE, ROA, profit margin, asset turns, APT, C2C, ART, INVT, and PPET. 2.Can you explain the differences you see in their performance based on their supply chain strategy and structure?
3.Compare the metrics for each company with similar metrics for Amazon and Nordstrom from Table 3-1. Which metrics does each company perform better on? What supply chain drivers and metrics might explain this difference in performance?
CASE STUDY Financial Statements for Walmart Stores Inc. and Macy's Inc. Table 3-8 contains the financial results for Walmart and based on their supply chain strategy and structure? Com- Macy's for 2012. Evaluate the financial performance of pare the metrics for each company with similar metrics each company based on the various metrics discussed in for Amazon and Nordstrom from Table 3-1. Which met- Section 3.1, such as ROE, ROA, profit margin, asset rics does each company perform better on? What supply turns, APT, C2C, ART, INVT, and PPET. Can you chain drivers and metrics might explain this difference in explain the differences you see in their performance performance? TABLE 3-8 Selected Financial Data for Walmart Stores Inc. and Macy's Inc. Year ended January 31, 2013 ($ millions) Walmart Macy's Net operating revenues 469,162 27,931 Cost of goods sold 352,488 16,725 Gross profit 116,674 11,206 Selling, general, and administrative expense 88,873 8,440 Other Costs 88 Operating income 27,801 2,678 Interest expense 2,251 388 Other income(loss)-net 187 134 Income before income taxes 25,737 2,290 Income taxes 7,981 804 Net income 17,756 1,486 Assets Cash and cash equivalents 7,781 1,836 Net receivables 6,768 371 Inventory 43,803 5,308 Prepaid expenses and other 1,588 361 Total current assets 59,940 7,876 Property, plant, and equipment 116,681 8,196 Goodwill 20,497 3,743 Other intangible assets 561 Other assets 5,987 615 Total assets 203, 105 20,991 Liabilities and Stockholder Equity Accounts payable 59,099 4,951 Short-term debt 12,719 124 Total current liability 71,818 5,075 Long-term debt 41,417 6,806 Other liabilities 3,059 Total liabilities 121,367 14,940 Stockholder equity 81,738 6,051 TABLE 3-1 Selected Financial Data for Amazon.com and Nordstrom Inc. Amazon.com Nordstrom Inc. Period Ending 31-Dec-13 2-Feb-13 12,148,000 7,432,000 4,716,000 3,371,000 1,345,000 Total Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Operating Income or Loss Total Other Income/Expenses Net Earnings Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest 74,452,000 54,181,000 20,271,000 19,526,000 745,000 -98,000 647,000 141,000 506,000 161,000 -71,000 274,000 1,345,000 160,000 1,185,000 450,000 Net Income 735,000 1,285,000 Assets Cash and Cash Equivalents Short-Term Investments Net Receivables Inventory Current Deferred Tax Assets, Net 8,658,000 3,789,000 4,767,000 7,411,000 Other Current Assets 2,129,000 1,360,000 227,000 80,000 5,081,000 2,579,000 175.000 Total Current Assets Property, Plant, and Equipment (PP&E) Goodwill 24,625,000 10,949,000 2.655,000 1,930,000 40,159,000 254,000 8,089,000 21,821,000 Other Assets Total Assets Liabilities and Stockholder Equity Accounts Payable Short-/Current Long-Term Debt Accrued Salaries, Wages, and Related Benefits Other Current Liabilities Long-Term Debt Other Liabilities Deferred Long-Term Liability Charges Total Liabilities Total Stockholder Equity 1,159,000 3,191,000 4,242,000 1,011,000 7,000 404,000 804,000 3,124,000 341,000 485,000 6,176,000 1,913,000 30,413,000 9,746,000 CASE STUDY Financial Statements for Walmart Stores Inc. and Macy's Inc. Table 3-8 contains the financial results for Walmart and based on their supply chain strategy and structure? Com- Macy's for 2012. Evaluate the financial performance of pare the metrics for each company with similar metrics each company based on the various metrics discussed in for Amazon and Nordstrom from Table 3-1. Which met- Section 3.1, such as ROE, ROA, profit margin, asset rics does each company perform better on? What supply turns, APT, C2C, ART, INVT, and PPET. Can you chain drivers and metrics might explain this difference in explain the differences you see in their performance performance? TABLE 3-8 Selected Financial Data for Walmart Stores Inc. and Macy's Inc. Year ended January 31, 2013 ($ millions) Walmart Macy's Net operating revenues 469,162 27,931 Cost of goods sold 352,488 16,725 Gross profit 116,674 11,206 Selling, general, and administrative expense 88,873 8,440 Other Costs 88 Operating income 27,801 2,678 Interest expense 2,251 388 Other income(loss)-net 187 134 Income before income taxes 25,737 2,290 Income taxes 7,981 804 Net income 17,756 1,486 Assets Cash and cash equivalents 7,781 1,836 Net receivables 6,768 371 Inventory 43,803 5,308 Prepaid expenses and other 1,588 361 Total current assets 59,940 7,876 Property, plant, and equipment 116,681 8,196 Goodwill 20,497 3,743 Other intangible assets 561 Other assets 5,987 615 Total assets 203, 105 20,991 Liabilities and Stockholder Equity Accounts payable 59,099 4,951 Short-term debt 12,719 124 Total current liability 71,818 5,075 Long-term debt 41,417 6,806 Other liabilities 3,059 Total liabilities 121,367 14,940 Stockholder equity 81,738 6,051 TABLE 3-1 Selected Financial Data for Amazon.com and Nordstrom Inc. Amazon.com Nordstrom Inc. Period Ending 31-Dec-13 2-Feb-13 12,148,000 7,432,000 4,716,000 3,371,000 1,345,000 Total Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Operating Income or Loss Total Other Income/Expenses Net Earnings Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest 74,452,000 54,181,000 20,271,000 19,526,000 745,000 -98,000 647,000 141,000 506,000 161,000 -71,000 274,000 1,345,000 160,000 1,185,000 450,000 Net Income 735,000 1,285,000 Assets Cash and Cash Equivalents Short-Term Investments Net Receivables Inventory Current Deferred Tax Assets, Net 8,658,000 3,789,000 4,767,000 7,411,000 Other Current Assets 2,129,000 1,360,000 227,000 80,000 5,081,000 2,579,000 175.000 Total Current Assets Property, Plant, and Equipment (PP&E) Goodwill 24,625,000 10,949,000 2.655,000 1,930,000 40,159,000 254,000 8,089,000 21,821,000 Other Assets Total Assets Liabilities and Stockholder Equity Accounts Payable Short-/Current Long-Term Debt Accrued Salaries, Wages, and Related Benefits Other Current Liabilities Long-Term Debt Other Liabilities Deferred Long-Term Liability Charges Total Liabilities Total Stockholder Equity 1,159,000 3,191,000 4,242,000 1,011,000 7,000 404,000 804,000 3,124,000 341,000 485,000 6,176,000 1,913,000 30,413,000 9,746,000
