Ross Stores 1999 2000 2001 2002 2003 0.061 0.057 0.053 0.057 0.058 Advanced Dupont Model Net Operating Margin * Net Operating Asset Turnover = Return on Net Operating Assets 5.391 5.551 5.824 5.321 0.306 0.292 0.332 0.310 Net Borrowing Cost (NBC) 0.066 0.060 0.014 0.000 0.240 0.231 0.318 0.310 Spread (RNOA - NBC) Financial Leverage (LEV) ROE = RNOA + LEV*Spread 0.068 0.063 0.021 0.054 0.323 0.306 0.339 0.326 Ross Stores Margin Analysis Gross Margin EBITDA Margin EBIT Margin Net Operating Margin (64 non-rec.) Net Operating Margin Turnover Analysis Net Operating Asset Turnover Net Working Capital Turnover Avge Days to Collect Receivables Avge Inventory Holding Period Avge Days to Pay Payables PP&E Turnover 0.314 0.123 0.103 0.063 0.061 0.312 0.114 0.093 0.057 0.057 0.311 0.107 0.086 0.053 0.053 0.274 0.112 0.094 0.057 0.057 0.275 0.115 0.095 0.058 0.058 5.391 12.847 2.028 103.866 52.056 9.426 5,551 13.087 2.136 104.916 52.599 9.433 5.824 13.552 2.010 95.437 52.606 9.619 5.321 11.131 2.031 100.076 56.791 8.841 6. Tables below contain information about OSTK, AMZN, ROST, and MAY. Complete the table for Overstock.com for 2003 on page 6. (4 points) And discuss the key strengths and weaknesses of OSTK's financial performance compared to its competitors (the data related to competitors is presented on page 7 8 and 9). (4 points) Amazon.com 1999 2000 2001 2002 2003 (0.387) (0.464) (0.002) 0.031 1.889 (0.137) 3.273 (0.449) 4.713 5.686 0.179 Advanced Dupont Model Net Operating Margin * Net Operating Asset Turnover = Return on Net Operating Assets Net Borrowing Cost (NBC) Spread (RNOA - NBC) Financial Leverage (LEV) ROE = RNOA + LEV*Spread 0.065 0.061 (0.876) 0.072 (0.948) (5.171) 4.027 (0.007) 0.064 (0.072) (1.598) 0.107 (0.513) (1.793) 0.117 (1.775) (0.030) 0.471 + Amazon.com Margin Analysis Gross Margin EBITDA Margin EBIT Margin Net Operating Margin (b4 non-rec.) Net Operating Margin Turnover Analysis Net Operating Asset Turnover Net Working Capital Turnover Avge Days to Collect Receivables Avge Inventory Holding Period Avge Days to Pay Payables PP&E Turnover 0.218 (0.192) (0.364) (0.364) (0.387) 0.238 (0.123) (0.240) (0.240) (0.464) 0.239 (0.032) (0.074) (0.074) (0.137) 0.273 0.049 0.027 0.027 (0.002) 0.253 0.066 0.051 0.051 0.031 1.889 8.002 0.000 34.261 80.458 8.076 3.273 8.867 0.000 24.458 70.558 9.786 4.713 9.098 5.210 22.103 69.293 15.389 5.686 9.272 8.472 23.043 68.349 22.704 May Department Stores 1999 2000 2001 2002 2003 0.080 0.074 0.065 0.058 0.049 Advanced Dupont Model Net Operating Margin * Net Operating Asset Turnover = Return on Net Operating Assets 1.764 1.650 1.585 1.609 0.131 0.107 0.091 0.078 + 0.055 0.050 0.055 0.056 0.075 0.057 0.036 0.022 Net Borrowing Cost (NBC) Spread (RNOA - NBC) Financial Leverage (LEV) ROE = RNOA + LEV*Spread 1.074 1.233 1.161 1.016 0.212 0.178 0.133 0.101 + May Department Stores Margin Analysis Gross Margin EBITDA Margin EBIT Margin Net Operating Margin (b4 non-rec.) Net Operating Margin Turnover Analysis Net Operating Asset Turnover Net Working Capital Turnover Avge Days to Collect Receivables Avge Inventory Holding Period Avge Days to Pay Payables PP&E Turnover 0.358 0.164 0.131 0.079 0.080 0.351 0.156 0.120 0.074 0.074 0.350 0.145 0.105 0.065 0.065 0.340 0.134 0.093 0.062 0.058 0.339 0.138 0.096 0.065 0.049 1.764 4.758 53.501 111.519 39.162 3.002 1.650 4.837 51.744 115.175 39.121 2.790 1.585 5.327 49.768 117.459 43.396 2.515 1.609 5.293 47.817 115.828 46.779 2.514 Ross Stores 1999 2000 2001 2002 2003 0.061 0.057 0.053 0.057 0.058 Advanced Dupont Model Net Operating Margin * Net Operating Asset Turnover = Return on Net Operating Assets 5.391 5.551 5.824 5.321 0.306 0.292 0.332 0.310 Net Borrowing Cost (NBC) 0.066 0.060 0.014 0.000 0.240 0.231 0.318 0.310 Spread (RNOA - NBC) Financial Leverage (LEV) ROE = RNOA + LEV*Spread 0.068 0.063 0.021 0.054 0.323 0.306 0.339 0.326 Ross Stores Margin Analysis Gross Margin EBITDA Margin EBIT Margin Net Operating Margin (64 non-rec.) Net Operating Margin Turnover Analysis Net Operating Asset Turnover Net Working Capital Turnover Avge Days to Collect Receivables Avge Inventory Holding Period Avge Days to Pay Payables PP&E Turnover 0.314 0.123 0.103 0.063 0.061 0.312 0.114 0.093 0.057 0.057 0.311 0.107 0.086 0.053 0.053 0.274 0.112 0.094 0.057 0.057 0.275 0.115 0.095 0.058 0.058 5.391 12.847 2.028 103.866 52.056 9.426 5,551 13.087 2.136 104.916 52.599 9.433 5.824 13.552 2.010 95.437 52.606 9.619 5.321 11.131 2.031 100.076 56.791 8.841 6. Tables below contain information about OSTK, AMZN, ROST, and MAY. Complete the table for Overstock.com for 2003 on page 6. (4 points) And discuss the key strengths and weaknesses of OSTK's financial performance compared to its competitors (the data related to competitors is presented on page 7 8 and 9). (4 points) Amazon.com 1999 2000 2001 2002 2003 (0.387) (0.464) (0.002) 0.031 1.889 (0.137) 3.273 (0.449) 4.713 5.686 0.179 Advanced Dupont Model Net Operating Margin * Net Operating Asset Turnover = Return on Net Operating Assets Net Borrowing Cost (NBC) Spread (RNOA - NBC) Financial Leverage (LEV) ROE = RNOA + LEV*Spread 0.065 0.061 (0.876) 0.072 (0.948) (5.171) 4.027 (0.007) 0.064 (0.072) (1.598) 0.107 (0.513) (1.793) 0.117 (1.775) (0.030) 0.471 + Amazon.com Margin Analysis Gross Margin EBITDA Margin EBIT Margin Net Operating Margin (b4 non-rec.) Net Operating Margin Turnover Analysis Net Operating Asset Turnover Net Working Capital Turnover Avge Days to Collect Receivables Avge Inventory Holding Period Avge Days to Pay Payables PP&E Turnover 0.218 (0.192) (0.364) (0.364) (0.387) 0.238 (0.123) (0.240) (0.240) (0.464) 0.239 (0.032) (0.074) (0.074) (0.137) 0.273 0.049 0.027 0.027 (0.002) 0.253 0.066 0.051 0.051 0.031 1.889 8.002 0.000 34.261 80.458 8.076 3.273 8.867 0.000 24.458 70.558 9.786 4.713 9.098 5.210 22.103 69.293 15.389 5.686 9.272 8.472 23.043 68.349 22.704 May Department Stores 1999 2000 2001 2002 2003 0.080 0.074 0.065 0.058 0.049 Advanced Dupont Model Net Operating Margin * Net Operating Asset Turnover = Return on Net Operating Assets 1.764 1.650 1.585 1.609 0.131 0.107 0.091 0.078 + 0.055 0.050 0.055 0.056 0.075 0.057 0.036 0.022 Net Borrowing Cost (NBC) Spread (RNOA - NBC) Financial Leverage (LEV) ROE = RNOA + LEV*Spread 1.074 1.233 1.161 1.016 0.212 0.178 0.133 0.101 + May Department Stores Margin Analysis Gross Margin EBITDA Margin EBIT Margin Net Operating Margin (b4 non-rec.) Net Operating Margin Turnover Analysis Net Operating Asset Turnover Net Working Capital Turnover Avge Days to Collect Receivables Avge Inventory Holding Period Avge Days to Pay Payables PP&E Turnover 0.358 0.164 0.131 0.079 0.080 0.351 0.156 0.120 0.074 0.074 0.350 0.145 0.105 0.065 0.065 0.340 0.134 0.093 0.062 0.058 0.339 0.138 0.096 0.065 0.049 1.764 4.758 53.501 111.519 39.162 3.002 1.650 4.837 51.744 115.175 39.121 2.790 1.585 5.327 49.768 117.459 43.396 2.515 1.609 5.293 47.817 115.828 46.779 2.514