Using CAPSIM Competition Round Courier Reports for the Rounds :

Identify your closest competitor at the end of Round 2 ( Hint: identify a company with the closest products & pricing. Create a table comparing your products with specs vs their products with specs. Show me your rationale in identifying the closest competitor (5 points)

Selected Financial Statistics (Given in Capsim) Andrews Baldwin Chester Digby Erie Ferris ROS -5.7% 4.8% 1.0% 3.2% 2.6% 5.5% Asset Turnover 1.20 0.86 1.15 1.01 0.78 1.18 ROA -6.9% 4.2% 1.1% 3.2% 2.0% 6.5% Leverage 2.6 2.1 2.8 2.1 2.1 2.0 ROE -18.0% 8.7% 3.2% 6.9% 4.2% 12.9% Emergency Loan $7,973,916 $0 $895,259 $0 $0 $0 Sales $121,935,844 $141,232,890 $171,489,435 $141,695,521 $89,490,933 $116,680,308 EBIT ($3,505,735) $20,370,494 $13,608,220 $15,894,166 $10,388,150 $15,321,168 Profits ($6,999,601) $6,789,918 $1,668,772 $4,532,346 $2,310,989 $6,430,849 Cumulative Profit ($6,773,119) $10,488,381 $8,537,413 $11,511,989 $9,655,118 $15,195,913 SG&A / Sales 21.6% 14.0% 16.9% 18.3% 13.0% 15.6% Contrib. Margin % 25.2% 36.6% 32.3% 37.5% 33.3% 33.1%

B. Use selected Financials table from Round 2 and Round 1 for this question. Identify industry revenue growth PM growth, and CM growth for the 2^nd Competition Rounds (10 points). How are your growth rates different than these avgs?

C. Use selected Income Statement table from Round 2 and Round 1 for this question. Create growth + common-size Income Statements for items for from 1^st Round to 2^nd Round (10 points) for your firm and your closest competitor.

D. I. Write down the steps of strategic financial analysis ( 5 points)

II. Compare and contrast the performance of your firm vs. industry & the closest competitor. USE YOUR ANALYSES FROM QUESTION B & C ( COMMON SIZE & GROWTH STATEMENTS) (10 points)

HINTS:

QUESTION 4 B

HINT:

NEED TO DO THIS FOR REVENUES, PM & CM

NOT FIRMS INDIVIDUALLY FOR THE INDUSTRY AS A WHOLE!

REVENUES =

THIS YEAR

1. CALCULATE INDUSTRY TOTAL SALES

2. CALCULATE INDUSTRY AVG SALES

DO THE SAME FOR THE PRIOR /PAST YEAR

CALCULATE THE CHANGE

(THIS YEARS SALES AVG LAST YEARS SALES AVG)/ LAST YEARS SALES AVG *100 = GROWTH %

QUESTION 4 C

HINT:

1. GROWTH = % GROWTH

YOU NEED THIS YEARS AND LAST YEARS CAPSTONE COURIER REPORTS!

FOR EVERYTHING!

(THIS YEARS NUMBERS LAST YEARS NUMBERS)/ LAST YEARS NUMBERS) *100

2. COMMON SIZE STATEMENT

YOU ONLY NEED THIS YEARS REPORT

DIVIDE EVERYTHING ON THE FINANCIALS BY (REVENUES sometimes Assets)

The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s) to answer the following questions. Show your calculations. You may (or may not) need to fill in missing information.

(in $ million)	Company X	Company Y
Net revenues	37296	107958
Net income	1188	3526
Accounts receivables	19908	910
Total current assets	29564	18672
Total assets
Total current liabilities	15370	12708
Total liabilities	32433	26494
Total stockholders equity	4500	14000

Footnote: Approximately 98% of Company Ys account receivables are from unpaid balances carried by customers using the store credit card.

Which company is better positioned to pay its bills in the short-run (i.e., is more liquid and less risky in the short-term)? Justify using appropriate ratio(s). (10point)

_________________________________________________________________________________________________

_________________________________________________________________________________________________

Is one company significantly more profitable than the other? Justify using at least 2 appropriate ratio(s). (10 point)

________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

Which company is more leveraged? Justify using appropriate ratio(s). (10 points)

________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________