Bed Bath & Beyond is a leading retailer of home goods with over 1,550 stores. The analyst believes BBBY is undervalued given its market leadership, strong cash flows, and initiatives to expand online. A DCF valuation estimates the stock is worth $90.2 per share, indicating 25% upside. However, risks include increased competition from online retailers and pressure on gross margins from price competition.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.
Rosewood Hotels and Resorts: Branding to increase Customer Profitability and ...Pallabh Bhura
This presentation is an in-depth marketing analysis of the Harvard Business Case "Rosewood Hotels and Resorts". It has been created by Pallabh Bhura of Jadavpur University during a marketing internship under Prof. Sameer Mathur, IIM Lucknow. It takes into account the various concepts of branding so as to increase Customer Profitability and Lifetime Value of Rosewood Hotels and Resorts.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.
Rosewood Hotels and Resorts: Branding to increase Customer Profitability and ...Pallabh Bhura
This presentation is an in-depth marketing analysis of the Harvard Business Case "Rosewood Hotels and Resorts". It has been created by Pallabh Bhura of Jadavpur University during a marketing internship under Prof. Sameer Mathur, IIM Lucknow. It takes into account the various concepts of branding so as to increase Customer Profitability and Lifetime Value of Rosewood Hotels and Resorts.
This is a brief review of Campbell soup's 10K. It is driven by questions to help you find the most important parts in a 10K report. All the questions are answered.
CHAPTER 9—FOR THE INVESTORMULTIPLE CHOICE1.The ratio per.docxchristinemaritza
CHAPTER 9—FOR THE INVESTOR
MULTIPLE CHOICE
1. The ratio percentage of earnings retained is the same as that termed:
a.
dividend yield.
b.
dividend payout.
c.
this year's retained earnings to net income.
d.
return on common equity.
e.
book value.
2. What is the effect of the exercise of stock options?
a.
They generate cash to the issuing firm and therefore increase profit per share.
b.
They are an expense at the time of exercise. This lowers net income.
c.
They increase debt and lower borrowing capacity but have no effect on profit.
d.
They increase the number of shares outstanding.
e.
They have no immediate effect on profitability.
3. Which of the following is not a reason to interpret book value with caution?
a.
Land may be worth more than it cost
b.
Depreciable assets may be held
c.
Investments may be worth more than their purchase price
d.
Patents may have a high market value
e.
All of the answers are correct.
4. The price/earnings ratio:
a.
measures the past earning ability of the firm.
b.
is a gauge of future earning power as seen by investors.
c.
relates price to dividends.
d.
relates price to total net income.
e.
All of the answers are correct.
5. Smith reported the following for 2012.
Beginning market price
$20.00
Average market price
24.00
Ending market price
26.00
Earnings per share:
Basic
1.80
Diluted
1.60
Cash dividends per share
1.00
The price earnings ratio and dividend payout were:
a.
16.25 and 62.50%.
b.
16.25 and 65.00%.
c.
17.00 and 62.50%.
d.
15.00 and 62.50%.
e.
15.00 and 60.00%.
TRUE/FALSE
1. The percentage of earnings retained is computed by dividing retained earnings by total stockholders' equity.
2. The use of debt financing creates financial leverage.
3. Dividend yield relates dividends per share to market price per share.
4. Stock appreciation rights can have a material impact on reported earnings.
5. In general, new firms, growing firms, and firms perceived as growth firms will have a relatively low percentage of earnings retained.
PROBLEM
Comparative data for Albers Automotive for the two-year period 2011-2012 are presented below.
Income Statement Data
2012
2011
Net Sales
$1,500,000
$1,200,000
Cost of Goods Sold
934,000
741,000
Gross Profit
$ 566,000
$ 459,000
Operating Expense
376,000
277,000
Operating Income
$ 190,000
$ 182,000
Other Expense (interest)
15,000
12,000
Earnings Before Income Tax
$ 175,000
$ 170,000
Income Taxes
66,000
71,000
Net Income
$ 109,000
$ 99,000
Dividends Paid
48,000
42,000
Net Increase in Retained Earnings
$ 61,000
$ 57,000
Balance Sheet Data
Assets
2012
2011
Cash
$ 30,000
$ 10,000
Receivables (net)
130,000
90,000
Inventory
170,000
113,000
Land, Buildings, and Equipment (net)
650,000
547,000
Intangible Assets
20,000
20,000
$1,000,000
$780,000
Liabilities and Stockholders' Equity
2012
2011
Trade Notes and Accounts Payable
$ 100,000
$ 40,000
Miscellaneous Curre ...
Module 2 Rawhide Brewery Mini-case Template: Key
Proposal Summaries
Proposal 1
1. Rawhide brews Tabby beer at a few per case (improves Rawhides Net income on Income Statement)
2. Fee is adjusted monthly due to price of hops
3. Fee dependent on volume: as volume increase, fee decreases, but Rawhide profit increases
4. Fee (per case of beer) is adjusted annually due to inflation
5. Guaranteed minimum case of beer processing volume
6. Created a 5-year contract where Tabby would pay 20 cents less per case than presently
Proposal 2
1. Rawhide transfers brewery operations and 10-year debt (improves balance sheet) to Newco
2. Rawhide brewery equipment = $5mil & debt = $3.5 mil
3. Tabby pays $950K for 95% of Newco stock; Rawhide pays $50K for 5% Newco stock
4. Rawhide gets $1.5 mil note receivable with an annually adjusting interest rate depending on Newco profitability: higher profits = higher interest rate, up to 20%.
5. All beer processed at Newco is 15% cheaper than under Proposal 1, reducing COGS for Tabby.
6. Rawhide guarantees the $3.5 mil loan.
7. Rawhide would have more control than Tabby due to shareholder agreement.
8. Rawhide and Tabby pays the same fee per case, increasing COGS for both.
Proposal 3
1. Rawhide transfers brewery and debt to Newco
2. Rawhide gets 60% of Newco for $1.5 mil ($5 [asset] - $3.5 [debt])
3. Tabby buys 40% of Newco for $1.0 mil
4. Tabby and Rawhide both guarantee loan.
Proposal Effect on Rawhide's Debt/Equity Ratio (Reference debt to equity ratio = 1.33)
1. Proposal 1: D/E likely goes down (equity increases relative to liabilities)
a. Cash and marketable securities likely increase (Balance Sheet, B/S)
b. Retained earnings go up, assuming volume increases (B/S), flows to net income to retained earnings increasing equity
c. Net income goes up due to likely higher net revenue due to processing volume, profits, and inflation (Income Statement, I/S), flows to net income to retained earnings increasing equity
2. Proposal 2: D/E is likely reduced as liabilities are reduced and equity (retained earnings) increases, probably more than Proposal 1.
a. Net Income increases, as depreciation, amortization, and interest expenses are reduced and COGS is reduced 15% (I/S) flows to net income to retained earnings
b. Transferring brewery reduces non-current assets (an asset) (B/S) no impact on d/e
c. Transferring loan reduces long-term debts (a liability) (B/S), reduces debt
d. Rawhide holds 5% of Newco; assuming dividends, cash and equity increase (B/S) flows to net income to retained earnings increasing equity
e. Annual interest payment ($1.5 mil note receivable) improves cash position (B/S), flows to net income to retained earnings increasing equity
3. Proposal 3: D/E Ratio likely decreases
a. Net income increases, given a 15% decrease in brewery costs (COGS), depreciation, amortization, and interest expenses are materially reduced. (I/S), flows to net income to retained earnings incre ...
Running Head: EVALUATION OF CORPORATE PERFORMANCE 1
EVALUATION OF CORPORATE PERFORMANCE 2
Evaluation of Corporate Performance
Pro-forma Financial Statements of PepsiCo:
The pro forma income statement and balance sheet of PepsiCo incorporation areas under (annual report, 2012):
PEPSICO INCORPORATION
Pro-forma Income Statement
20132014
($000) ($000)
Revenues
Gross sales (10%) 72,041 82,041
Less: Cost Of Sales (10%)34,42044,420
Gross Profit (profit/loss) 37,62147,621
Operating expenses
Selling, General and Administrative 24,970 34,970
Amortization of intangible assets 119 219
Operating profit 12,532 22,532
Bottling equity income
Interest expense (899) (999)
Interest income and other 91 101
Income before income taxes 11,724 21,724
Provision for income tax 2,090 3,090
Net income 9,634 10,634
Less: income attributable to non controlling interest 36 46
Net income attributable to PepsiCo 9,598 10,598
Net income attributable to PepsiCo as per common share-holders:
Basic 3.96 3.99
Diluted 3.92 3.95
Weighted average common share outstanding
Basic 1,557 1,558
Diluted 1,575 1,675
Cash dividend declared per common share 2.12752.2276
PEPSICO INCORPORATION
PRO-FORMA BALANCE SHEET
20132014
($000) ($000)
ASSETS
Current Assets
Cash 6,279 7,279
Net Account Receivables 7,041 8,041
Inventory 3,581 4,581
Temporary Investment 322 422
Prepaid Expenses 1,4782,478
Total Current Assets 18,72019,441
Fixed Assets
Long Term Investments 19,136 20,136
Property, Plant &Equipment (Net) 1,781 2,781
Good will 16,971 17,971
Non-amortizable Intangible Assets 31,175 32,175
Investments in Non controlled Affiliates 1,633 2,633
Amortizable Intangible Assets, net 1,718 2,718
Total Fixed Assets 37,888 38,888
TOTAL ASSETS 72,414 82,414
LIABILITIES
Current Liabilities
Accounts Payable 10,196 11,196
Short Term Notes 4,815 5,815
Income taxes payable 317 417
Total Current Liabilities 15,328 16,328
SHAREHOLDERS’ EQUITY
Capital Stock 22,417 32,417
Retained Earnings 34,66944,669
Total Shareholders’ equity 65,57575,575
Total Liabilities &Equity 72,41482,414
These are the pro forma income statement and balance sheet of PepsiCo Incorporation as per the data taken from annual report 2012 of the corporation.
Ratio Analysis of PepsiCo:
The ratio analysis of PepsiCo incorporation as per the company financial statements reported in 2012 areas under (Annual Report, 2012):
A. LIQUIDITY .
After assessing REITs space and prepared a pitch book presentation for AvalonBay Communities (AVB), I explain that the company has strong fundamentals and great potential to sustain its growth in the next years. I support this view by pointing out that AVB seems to have a differentiated outlook on supply growth than other market participants, the economics for builders still looks attractive enough for the project to get started, and the demand side of the equation has increased, national job boost confidence in the sector. I note that the main principles to estimate REITs real value is based on an understanding of all the issues that impact the value of a property. In addition, my research points out that a lower price target for the stock is of $183.10, and the other side of the spectrum, the perpetuity growth method has a target as high as $225.07.
DLEON INC., PART Statements and Taxes Donna Jamison, a 2009 graduat.pdfarsmobiles
D\'LEON INC., PART Statements and Taxes Donna Jamison, a 2009 graduate of the University
of Florida with 4 years of assistant to the chairperson of the board of D\'Leon Inc., a small food
3-18 Financial banking experience, was recently brought in as snack foods national\" in
competition with Frito-Lay, Eagle, and other major roducer that operates in north Florida and
whose specialty is high-quality pecan and other nut products sold in the snack foods companies.
Watkins believed that market. D\'Leon\'s president, Al Watkins, decided in 2013 to undertake a
major expansion and to \"go s products were of higher quality than the competition\'s: that this
quality differential would enable it to arge a premium price; and that the end result would be
greatly increased sales, profits, and stock price. vertising campaign. D\'Leon\'s results were not
satisfactory, to put it mildly. Its board of directors, which the expansion was going. Unhappy
suppliers were being paid late; and the bank offices outside its home territory, and launched an
plant capacity, opened new sales businesspeople), was most ive consisted of its t, vice president,
and major stockholders (all of whom were local eteriorating situation, threatening to cut off
credit. As a result, Watkins was informed borna lamison was brought in and given the job of
assistant to Fred Campo, a retired banker who was D\'Leon\'s aJamison began by gathering the
financial statements and other data given in Tables IC 3.1, IC 3.2, IC 3.3, and was complaining
about the situati uicklv: otherwise, he would be fired. Also, at the board\'s insistence that changes
would have to be made-and q back to health, with Jamison\'s help. Note: We will continue with
er. Campo agreed to give up a few of his golfing days and help nurse the company s assistant.
You must help her answer the following questions for Campo. for Chapter 4. Provide clear
explanations.) this case in Chapter 4, and you will feel mo re comfortable with the analysis there.
But answering these questions will help prepare you king capital (NOwc), What effect did the
expansion have on sales, after-tax operating income, net operating wor and net income? b. What
effect did the company\'s expansion have on its free cash flow? c. D\'eon purchases materials on
30-day terms, meaning that it is supposed to pay for purchases within 30 days of receipt. Judging
from its 2014 balance sheet, do you think that D\'Leon pays suppliers on time? Explain, inclu
what problems might occur if suppliers are not paid in a timely manner d. D\'Leon spends money
for labor, materials, and fixed assets (depreciation) to make products - and spends stil more
money to sell those products. Then the firm makes sales that result in receivables, which
eventually result in cash inflows. Does it appear that D\'Leon\'s sales price exceeds its costs per
unit sold? How does this affect the cash balance? e. Suppose D\'Leon\'s sales manager told the
sales staff to start offering 60-day credit term.
Financial Planning Process
Planning Horizon - divide decisions into short-run decisions (usually next 12 months) and long-run decisions (usually 2 – 5 years)
Aggregation - combine capital budgeting decisions into one big project
Assumptions and Scenarios
Make realistic assumptions about important variables
Run several scenarios where you vary the assumptions by reasonable amounts
Determine at least a worst case, normal case and best case scenario
Cleveland Research Company Stock Pitch 2016 - FinalistSean Hynes
Worked to perform industry research and create a pitch for a 12-month position in KB Home (KBH), based on demand for intro level housing, strategic placement as an ecologically friendly, and rising rental pricing in key geographic segments. Numerous models were constructed such as a Discounted Cash Flows, Comparables Analysis, and Segmented Discounted Cash Flows. Our analysis resulted in a 12-month price target of $21.97, representing a nearly 50% upside from the pitch date. We placed as one of four finalists out of 20 teams and presented to a panel of Cleveland Research Company partners.
1. Bed Bath & Beyond (NYSE:BBBY) Confidential
CMP:USD 71.5
Market Capitalisation: USD 13.2 Billion
Overview
Bed bath & Beyond (or “the Company”) is a chain of domestic merchandise retail stores in United States and
Canada. The Company retails house furnishing products for bedroom, bathroom, kitchen and dining room.
This business fits within my investment theme of repetitive consumer demand. I think it’s a great investment
since a) The Company enjoys leadership position in the market. b) The Company will continue to generate
strong cash flows c) The Company trades at a P/E of 13.48x compared to its peers which trade much higher.
Hence, I would initiate a buy on the stock with an upside of 25% from current levels.
Industry
The US home furnishing and furniture category grew by 4.4% during 2013. Sales in the retail segment was $
101 billion ( $52 million in furniture and $49 million home furnishings) in line with levels in 03-04 but
significantly below the peak levels of $113 billion. The industry is expected to grow at a faster rate buoyed by
the general economic recovery in US and the bounce back in the housing market.
Company Overview
The Company is the largest player in the housewares and domestic merchandise sector and operates in United
States, Canada, and Mexico with over 1,550 stores spread over 42.6 million square feet.
The Company sells products under the following five formats:
Bed Bath and Beyond stores contribute to over 60% of total revenue over the years and will be a key revenue
driver for the business in the years going forward.
Name Particulars % Holding
Mr. Warren
Eisenberg
Mr. WarrenEisenbergis a Co-Founder of BedBath& BeyondInc.andhas been its Co-Chairman since
1992.
1.63%
Mr. Leonard
Joseph
Feinstein
Mr. Leonard Joseph Feinstein is a Co-Founder of Bed Bath & Beyond, Inc. and has been its Co-
Chairman since 1992.
1.05%
Mr. Steven H.
Temares
Mr. Steven H. Temares has been the ChiefExecutive Officer at the Company since April 2003. Mr.
Temares also servedas the Chief Operating Officer of the Company from 1997 to April 2003 and
Executive Vice President from1997to1999. Prior to1997, heservedas a Director of Real Estate and
General Counsel.
0.30%
Mr. Arthur
Stark
Mr. Arthur Stark has been the President and Chief Merchandising Officer for the Company since
January 03, 2006andJanuary 1999. Mr. Stark joined the Company in 1977 and served at different
Merchandising position in the Company.
0.08%
Ms. Susan E.
Lattmann
Ms. Susan E. Lattmann, has been Chief Financial OfficerandTreasurerof theCompany since February
2014. Ms. Lattmann has been Principal AccountingOfficerof Bed Bath & Beyond Inc. since April 7,
2009.
0.01%
The Company has a strong management bench at the top supported by the two cofounders who have built the
business through various business cycles. Currently over 97% of the shares in the Company are held by
traditional investment managers. Some value funds (such as Brown Brothers Harriman and Robert Olsteing) and
Balckrock have increased their stake in the Company increasing their conviction in the company.
Investment Thesis
a) The Company’s had been generating strong cashflows over the last four years (it has almost doubled
during 2014).
Format Description Number of Stores
Bed Bath and Beyond stores
1,014
World Market & Cost Plus
World Market 265
Buybuy Baby stores 90
Christmas Tree shop Giftware and household items 77
Harmon Beauty and health care 50
Home furnishings (bed linens and related items, bath items, and kitchen
textiles) and home furnishings (kitchen tabletop, fine tabletop, basic
housewares, general home furnishings, consumables, and certain
juvenile products).
Home decorating items, furniture, gifts, holiday and other seasonal
items and specialty food and beverages
Infant and toddler merchandise
2. 2
b) The Company has grown at a five year CAGR of 9.8% while sustaining its operating margins in the
high teens over the last five years.
c) The Company has been utilising its operating cash flows to buy back shares and has bought back USD
6.6 billion shares from investors in the last decade. The Company has recently raised USD 1.5 billion
as debt to buyback equity aggregating to USD 2.7 billion at an average cost of 4-5% which will boost
its returns.
d) The Company has consistently delivered mid teen returns ROE’s and ROCE’s.
e) The stock price had been under pressure due to results below expectations and low management
guidance for the year.
Key Risks
a) The Company’s P/E ratio has fallen from 30 times to 14 times earnings in the past decade. This points
either to a deterioration in the business model or slower growth in the business. The multiples have
declined due to i) The Company facing intense competition from online retailers (such as Amazon) and
ii) slow growth from existing stores. The Company has entered into the online space which should
pick pace. Further, as a consumer psyche I think that the consumers would still want to actually see the
product before buying. Second, of the last 10 years growth during five years were lost on account of
the slowdown in the housing market. If the business scenario improves the Company will clock in
higher growth rates. Even in the bad years the Company has been generating cash flows.
b) The housing market might not recover and consumers would start curtailing their expenses. During the
last decade the Company has had only a one year of negative same store sales growth whereas its
competitors have not fared well post the crisis. Further, with a strong cash position the Company will
be ready to takeover the existing competitors.
c) Pressure on Gross Margins: There has been a severe pressure on the Company’s gross margins over
the past few years. In fact it has come down below 40% for the first time in decades. The industry has
been undergoing a many structural changes which has led to competitors raking a price war. The
Company has to tackle such price war by lowering prices. Though the business can recover s uch
margins due to its scale of purchasing power.
Valuation
On a comparable valuation analysis we observe that the Company is trading at a significant discount to its
market competitors. Given the leadership position of the Company in the market coupled with the recent push
towards new channels for growth (i.e. online) and strong cash flows to support it we believe that the market has
been undervaluing the Company due to low growth. The market should give some kind of premium to the
market leader in the industry. Further, given the online initiative launched by the Company there might be an
growth surprise. We have recalibrated the valuation of the Company considering various P/E scenarios.
Company Name Revenue Market Cap Net Debt Gross Margin % EBITDA % Debt/Capital % NTM TEV/Forward EBITDA NTM Forward P/E
Bed Bath & Beyond Inc. (NasdaqGS:BBBY) 12,146.96 13,250.1 213.4 39.3% 15.4% 33.8% 7.45x 13.50x
Williams-Sonoma Inc. (NYSE:WSM) 4,859.84 6,510.4 (68.6) 38.7% 13.9% 0.2% 9.53x 20.94x
The Home Depot, Inc. (NYSE:HD) 84,581.81 1,32,223.4 12,520.0 34.8% 14.3% 59.4% 11.42x 20.05x
Pier 1 Imports, Inc. (NYSE:PIR) 1,945.03 1,258.1 165.0 56.9% 11.2% 38.9% 6.71x 13.71x
Restoration Hardware Holdings, Inc. (NYSE:RH) 2,024.54 3,267.7 166.6 36.5% 12.2% 36.2% 15.35x 32.70x
Mean 10.1x 20.2x
Median 9.5x 20.1x
P/E 2016 2017
13.5x 74.9 81.4
14.0x 77.7 84.4
14.5x 80.5 87.4
15.0x 83.3 90.4
15.5x 86.0 93.4
16.0x 88.8 96.5
17.0x 94.4 102.5
18.0x 99.9 108.5
19.0x 105.5 114.5
20.0x 111.0 120.6
3. 3
Valuing the Company at an average multiple of 16x we arrive at a price of USD 89 (an upside potential of
25%). If we value the Company at the median (20x) then we arrive at a valuation of USD 111 per share (a 56%
increase) although we feel that real impact on earnings as a result of share buybacks will come in 2017 and later
years. Hence, if we take a multiple benchmark of 14x FY 17 earnings we arrive at a valuation of USD 85.
We ran a DCF analysis on the cash flows of the Company assuming that the Company retains its current growth
trajectory and gross margins. We have assumed that the Company buys back shares aggregating to USD 2.7
billion over the next three years. The WACC for the Company has been calculated at 7.84% considering the
current leverage. Terminal Value has been calculated assuming a terminal growth of 2.5%.
Considering dcf valuation the value of the Company works out to USD 91.4 given the strong cash flows of the
Company in the coming years.
Conclusion
Taking an average of the prices derived from the above two methods we arrive at a price of USD 90.2.
(USD Million) FY 2015 FY 2016 FY 2017
FCFF 921.3 1,012.9 1,045.3
TV 19,574.1
Discounted 854.3 871.0 16,441.2
Enterprise Value 18,166.5
Less Debt 1,500.0
Equity Value (per share) 91.4
6. 6
Ratios
(USD Million) Aug-30-2014
ASSETS
Cash And Equivalents 1,226.6
Short Term Investments 60.0
Total Cash & ST Investments 1,286.6
Accounts Receivable -
Total Receivables -
Inventory 2,758.7
Deferred Tax Assets, Curr. -
Other Current Assets 434.4
Total Current Assets 4,479.8
Gross Property, Plant & Equipment 3,676.9
Accumulated Depreciation (2,100.0)
Net Property, Plant & Equipment 1,576.9
Long-term Investments 92.4
Goodw ill 486.3
Other Intangibles -
Deferred Tax Assets, LT -
Other Long-Term Assets 398.9
Total Assets 7,034.3
LIABILITIES
Accounts Payable 1,258.6
Accrued Exp. 407.2
Curr. Port. of Cap. Leases -
Curr. Income Taxes Payable 46.5
Unearned Revenue, Current 294.7
Other Current Liabilities -
Total Current Liabilities 2,006.9
Long-Term Debt 1,500.0
Capital Leases -
Pension & Other Post-Retire. Benefits -
Other Non-Current Liabilities 588.2
Total Liabilities 4,095.1
Common Stock 3.4
Additional Paid In Capital 1,560.1
Retained Earnings 9,006.9
Treasury Stock (7,620.6)
Comprehensive Inc. and Other (10.6)
Total Common Equity 2,939.2
Total Equity 2,939.2
Total Liabilities And Equity 7,034.3
7. 7
(USD Million) FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
Profitability
Return on Assets % 15.8% 16.3% 16.7% 15.1% 13.4% 10.4% 13.0% 14.9% 17.2% 17.1% 16.0%
Return on Capital % 23.2% 23.6% 24.6% 22.6% 20.1% 15.1% 18.4% 21.2% 25.0% 25.2% 24.5%
Return on Equity % 23.2% 24.1% 25.7% 24.2% 21.6% 15.3% 18.0% 20.9% 25.2% 25.9% 25.5%
Return on Common Equity % 23.2% 24.1% 25.7% 24.2% 21.6% 15.3% 18.0% 20.9% 25.2% 25.9% 25.5%
Margin Analysis
Gross Margin % 41.9% 42.5% 42.8% 42.8% 41.5% 39.9% 41.0% 41.4% 41.4% 40.2% 39.7%
SG&A Margin % 27.6% 27.1% 27.7% 29.4% 29.6% 30.5% 28.5% 26.7% 24.9% 25.2% 25.7%
EBITDA Margin % 16.2% 17.3% 17.0% 15.4% 14.1% 11.8% 14.9% 16.8% 18.4% 16.8% 15.9%
Net Income Margin % 8.9% 9.8% 9.9% 9.0% 8.0% 5.9% 7.7% 9.0% 10.4% 9.5% 8.9%
Same Store Sales Grow th % 6.3% 4.5% 4.6% 4.9% 1.0% (2.4%) 4.4% 7.8% 5.9% 2.7% 2.4%
Asset Turnover
Total Asset Turnover 1.8x 1.7x 1.8x 1.8x 1.8x 1.8x 1.7x 1.6x 1.7x 1.8x 1.8x
Fixed Asset Turnover 9.5x 9.1x 8.6x 7.9x 6.9x 6.4x 6.9x 7.8x 8.2x 8.2x 7.6x
Inventory Turnover 2.7x 2.7x 2.7x 2.7x 2.6x 2.7x 2.7x 2.8x 2.8x 2.9x 2.8x
Short Term Liquidity
Current Ratio 2.6x 2.4x 2.1x 2.4x 2.1x 2.7x 3.1x 3.1x 3.1x 2.4x 2.1x
Quick Ratio 1.1x 1.0x 0.7x 0.9x 0.2x 0.7x 1.3x 1.4x 1.3x 0.6x 0.5x
Cash from Ops. to Curr. Liab. 0.7x 0.7x 0.7x 0.5x 0.6x 0.6x 0.8x 0.7x 0.9x 0.7x 0.8x
Avg. Days Inventory Out. 134.9 133.0 134.4 137.7 137.8 136.8 134.0 132.1 132.1 129.0 132.3
Avg. Days Payable Out. 51.4 49.8 51.6 53.5 51.0 45.3 43.2 45.0 46.9 44.6 52.1
Long Term Solvency
Total Debt/Equity NA NA NA NA NA NA NA NA NA 2.7% 2.8%
Total Debt/Capital NA NA NA NA NA NA NA NA NA 2.6% 2.7%
LT Debt/Equity NA NA NA NA NA NA NA NA NA 2.7% 2.7%
LT Debt/Capital NA NA NA NA NA NA NA NA NA 2.6% 2.7%
Total Liabilities/Total Assets 30.5% 31.1% 33.1% 33.1% 33.4% 29.7% 29.1% 30.4% 31.5% 35.0% 38.0%
Compound Annual Growth Rate Over Five Years
Total Revenue 26.5% 22.6% 19.4% 17.7% 14.0% 10.0% 8.7% 8.6% 7.5% 9.1% 9.8%
Gross Profit 26.6% 23.3% 20.3% 18.6% 14.0% 8.9% 8.0% 7.8% 6.8% 8.5% 9.7%
EBITDA 31.9% 29.9% 25.4% 20.1% 12.4% 3.2% 5.5% 8.3% 11.4% 13.0% 16.6%
Net Income 32.6% 30.9% 27.2% 22.0% 13.2% 1.3% 3.5% 6.7% 10.7% 13.0% 19.2%
Diluted EPS before Extra 31.0% 29.1% 26.6% 23.1% 16.0% 4.6% 6.9% 9.8% 14.2% 16.8% 23.9%
Tangible Book Value 34.7% 29.5% 20.7% 17.8% 10.2% 8.7% 10.9% 12.1% 8.3% 7.2% 2.7%
