This case focuses on the use of financial ratios. Two retailers, Sears
- Describes key components of the case study in a concise summary, highlighting key areas.
- Based on your findings, how do the retailing strategies of Sears and Wal-Mart differ? Explain.
- Wal-Mart’s average return on equity for the 1997 fiscal year was 19.7% [$3,525/$18,503+17,143)/2],
- What ratios are most important in assessing current and predicting future value creation for Sears? For Wal-Mart?
- How useful are financial ratios in evaluating the current performance of each of the two companies?
- How useful are financial ratios in comparing the relative performance of these two companies?