In: Accounting
The following information is taken from publicly traded retailers. The data comes from the balance sheet, income statement, and Item 2 on the companies' Form 10-K filings. Use the information to answer the requirements. | |||||
Company | Revenue (Millions) | COGS | Average Inventory | Retail SQ footage (000s) | Number of Stores |
Autozone (AZO) | $ 11,221 | $ 4,902 | $ 3,913 | $ 41,066 | $ 6,202 |
Costco (COST) | $ 151,576 | $ 121,715 | $ 10,437 | $ 110,700 | $ 762 |
Home Depot (HD) | $ 108,203 | $ 71,043 | $ 13,337 | $ 237,700 | $ 2,287 |
Lowe's (LOW) | $ 71,309 | $ 48,396 | $ 11,977 | $ 209,000 | $ 2,015 |
O'Reilly (ORLY) | $ 9,536 | $ 4,237 | $ 3,102 | $ 38,455 | $ 5,219 |
Walmart (WMT) | $ 511,729 | $ 374,623 | $ 44,026 | $ 1,129,000 | $ 11,361 |
a. Compute the days inventory outstanding (DIO) for each company | |||||
b. Compute the gross profit margin for each company | |||||
c. Compare the DIO and gross profit margin for each of the three combinations of competitors. What do we observe? How are the two ratios related? | |||||
d. Compute the following two nontraditional efficiency metrics: Revenue per square foot and Revenue per store. What do we observe? |