Ratio Formula Sears 1997 Walmart 1998 (1997)

30682.00 19352.00
Current Assets
Current Ratio 15790.00 14460.00
Current Liabilities
1.94 1.34

23852.00 2423.00
(Current Assets - Inventory)
Quick Ratio (Acid Test) 15790.00 14460.00
Current Liabilities
1.51 0.17

14527.00 24520.00
Gross Margin
Gross Margin Percentage 41296.00 117958.00
Net Sales Revenue
35.18% 20.79%

1188.00 3526.00
Net Income
Profit Margin 41296.00 117958.00
Net Sales Revenue
2.88% 2.99%

41296.00 117958.00
Sales Revenue
Asset Tunover 37433.50 42494.00
Average Total Assets
1.10 2.78

41296.00 117958.00
Sales Revenue
Equity Turnover 5403.50 17823.00
Share Holders Equity
7.64 6.62

41296.00 117958.00
Sales Revenue
Capital Intensity 11324.00 30416.00
Property, Plant and Equipment
3.65 3.88

(19843+19303)/2 * 365 (976+845)/2*365

Average Account Receivables * 365 Days
Day's Receivables 41296.00 117958.00
Sales
199.13 2.82
 Ratio Formula Sears 1997 Walmart 1998 (1997)
(6637+7225)/2 * 365 (9126+7628)/2*365
Average Accounts Payable * 365 Days
Day's Payable 27167.00 94038.00
Purchases
93.12 32.51

(5044+4646)/2 * 365 (16497+15897)/2*365

Average Inventory * 365
Day's Inventory 26769.00 93438.00
Cost of Sales
66.06 63.27

26769.00 93438.00
Cost of Sales
Inventory Turnover 4845.00 16197.00
Average Inventory
5.53 5.77

41296.00 117958.00
Sales Revenue
Working Capital Turnover 14194.50 5964.00
Average Working Capital
2.91 19.78

1188.00 3526.00
Net Income
Return on assets 37433.50 42494.00
Average Total Assets
3.174% 8.298%

1188.00 3526.00
Net Income
Return on Invested Capital 22910.00 30924.00
Long Term Liabilities + Shareholders's Equity
5.186% 11.402%

1188.00 3526.00
Net Income
Return on Share Holder's Equity 5403.50 17823.00
Average Shareholders Equity
21.99% 19.78%

1188.00 3526.00
Net Income
Earning Per Share 390.90 2241.00
Number of Shares Outstanding
3.04 1.57
 Ratio Formula Sears 1997 Walmart 1998 (1997)
556.00 7123.00
Cash Generated by operations
Cash Realization 1188.00 3526.00
Net Income
0.47 2.02

37433.50 42494.00
Average Total Assets
Financial Leverage Ratio 5403.50 17823.00
Average Share Holders Equity
6.93 2.38

1994.00 6503.00
Operating Profit
Interest Coverage Ratio 1409.00 784.00
Interest Payments
1.42 8.29

13071.00 10483.00
Long Term Liabilities
Debt/Equity Ratio 5862.00 18503.00
Share Holders Equity
223% 57%

Net Profit Margin * Asset Turnover Ratio *

ROE - 3 Steps (DuPont) 21.99% 19.78%
Financial Leverage

Tax Burden * Interest Burden * Operating Profit

ROE - 5 Steps (DuPont) 21.99% 19.78%
Margin * Asset Turnover Ratio * Financial Leverage

Cash Conversion Cycle Days Receivable + Days Inventory - Days Payables 172.07 33.57
 Sears 1997 Walmart 1998 (1997)
Tax burden 0.57 0.62
Interest Burden 1.05 1.11
OPM 0.05 0.04
ATR 1.10 2.78
Leverage 6.93 2.38
NPM 2.88% 2.99%
 Comments

Sears Roebuck is in a better position to meet their long obligations as

compared to walmart.

Liquidity is better in Sears Roebuck as compared to Walmart because they

have more near cash/ quick assets. Current liquidity is walmart is very poor.

Gross Profit Margin percentage is higher in Sears compared to Walmart by

15%

In terms of Net Profit margin Sears roebuck is slightly better than Walmart.

Walmart has better asset management. They are deploying their assets in
more efficient ways to generate the sales.

This shows how efficiently the organisation is using it's equity and Sears,
Roebuck is using the equity better

Walmart is slightly better than Sears in utilization of capital.

Sears Roebuck customer's take almost 200 days to actually pay the money for
their purchases. This is very poor when compared to Walmart which just takes
3 days.
 Comments

Walmart pays their suppliers in a month's time, while Sears enjoys higher
credit period of 3 months.

Walmart's inventory gets converted into sales in 63 days, while sears slightly
longer

Both organizations are converting their inventory to sales almost 5.5 times

Walmart is more efficient is using their working capital compared to Sears

This Suggests that walmart is utilising their Assets more effieciently as

compared to Sears Reobuck

This suggests that walmart is utilising it’s Long term investments better than
Sears roebuck hence, walmart is more effectivie than Sears Reobuck

ROE in Walmart in slightly lower than Sears

EPS of Sears is almost double compared to Walmart. Therefore investors will

get better returns
 Comments

Since Sears has lot of credit sales the Cash Realization ratio is very poor
compared to Walmart

Sears has lot more debt compared to Walmart. Sears in a debt driven
company.

D/E Ratio is favourable for Walmart, while for Sears is very high compared to
Walmart.

D/E Ratio is favourable for Walmart, while for Sears is very high compared to
Walmart.

Net profit margin and asset turnover ratio is more for Walmart this show
company is performing better as compared to sears. Also sear's ROE is inflated
due to leverage of company.

Through this ratio we are able to find that Sear is able to increase its ROE
thorugh leverage without impacting the interest burden on the company
which is a good sign. So the ROE of Sear outperforms walmart.

Walmart converts its entire cycle from Purchase to Sales to Collection in 33

days while Sears takes almost 5 times more days.