Your company is Best buy and its competitor are Costco and Target

Questions

Assess your company’s utilization of long-term assets.

Required:

1. Comment on your company’s asset-replacement policy
2. How is your company’s asset-replacement policy impacting its return on assets ratio?
3. Compare your company’s asset utilization ratio with that of its two competitors.
4. What method of depreciation does your company use?
5. What depreciation methods do your company’s two competitors use?