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Financial Analysis of Kmart Corporation - ACCT6010 - Desklib

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The University of Sydney

   

Financial Analysis (ACCT6010)

   

Added on  2020-03-04

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In the ACCT6010 Case Study, we will discuss the Financial Analysis of Kmart a subsidiary of Sears Holding Corporation. Kmart operates a network of retail stores offering a wide range of products which include toys, consumer electronics, food and consumables, equipment for gardens and lawns, apparel, and an in-store pharmacy. The company sells the above goods under brands like Craftsman, Jaclyn Smith, Joe and Boxer labels, DieHard, and Kenmore.

Financial Analysis of Kmart Corporation - ACCT6010 - Desklib

   

The University of Sydney

   

Financial Analysis (ACCT6010)

   Added on 2020-03-04

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Financial Analysis ofKmart CorporationFor the quarter ending April, 2017
Financial Analysis of Kmart Corporation - ACCT6010 - Desklib_1
ContentsIntroduction...........................................................................................................................................1Financial Analysis...................................................................................................................................1Asset Utilization Measurement.........................................................................................................2Operating Performance Measurement..............................................................................................3Liquidity Measurements....................................................................................................................4Capital Structure and Solvency Measurements.................................................................................5Market Performance Measurements................................................................................................6Conclusion.............................................................................................................................................7Bibliography...........................................................................................................................................7
Financial Analysis of Kmart Corporation - ACCT6010 - Desklib_2
IntroductionKmart is a subsidiary of Sears Holding Corporation. Kmart operates a network of retail storesoffering a wide range of products which include toys, consumer electronics, food and consumables, equipment for garden and lawns, apparel and in store pharmacy. The company sells the above goods under brands like Craftsman, Jaclyn Smith, Joe and Boxer labels, DieHard and Kenmore. There are approximately 735 Kmart stores [CITATION yah17 \l 16393 ]across USA.Financial AnalysisA financial analysis of Kmart has been performed for the quarter ending April, 2017 and the same has been compared to the last year quarter results. Kmart has a share of 37.37% in SearsHoldings and hence the financial data for Kmart has been taken as 37.37% of the Sears Holdings. The financial analysis includes analysing the profitability, asset utilization, liquidity, solvency and market performance of the company.Asset Utilization MeasurementRatioFormulaApr-17Apr-16 Breakeven pointGoodwill to asset ratioGoodwill/Total Assets=101/3390=3.0%=101/4176=2.4%Interest expense to debt ratioInterest expense / total debt=48/1600=3.0%=32/1404=2.3% Investment turnoverNet Sales / total investment=1493/2918=0.51=2139/2286=0.94 Days of working capital(Working capital*365)/Net sales=(47*365)/1493=11.6 days=(570*365)/2139=97.3 daysSales per personNet sales / total employees=1493/0.05=$28,537.0=2139/0.07=$32,156.4 Sales to equity ratioNet sales / =1493/1318=2139/882
Financial Analysis of Kmart Corporation - ACCT6010 - Desklib_3

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