Financial Analysis of Canadian Tire Corporation, Accounting Report

This report provides a financial analysis of Canadian Tire Corporation, a Canadian retail company. It examines the company's performance across its retail, financial services, and CT REIT segments. The report discusses the company's growth, including its store network transformations since 1994. The analysis includes an evaluation of the company's profitability, liquidity, and solvency ratios, comparing them to industry standards. The report concludes with a recommendation on whether Canadian Tire represents a sound investment, based on its financial performance and strategic initiatives. The analysis highlights the company's success in increasing revenue, assets, and liquidity, making it a potentially valuable investment.

Running Head: INTERMEDIATE ACCOUNTING
INTERMEDIATE ACCOUNTING
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Name of the University
Author Note

1INTERMEDIATE ACCOUNTING
Executive Summary
Canadian Tire Corporation that was founded in 1992 is the Canadian company of retail that
sells the wide ranges of the hardware, automotive, home products as well as sports and
leisure that is headquartered in Toronto, Ontario. Some of the stores also sells toys as well as
food products. The company operates in three different segments that is retail, financial
services and CT REIT. The company’s retail operations includes Canadian Tire, Canadian
Tire Petroleum, PartSource and Mark’s. Moreover, the financial services segment includes
financial as well as other ancillary products and services. Lastly, the CT REIT segments
includes closed end real estate investment trust. The period of the significant growth as well
as success has been experienced by the Canadian Tire and transformed their store network in
the three major waves that begins in 1994. Hence, this assignment will be based on the
financial analysis of the company with the industry and then making the recommendation
regarding whether the company represents the good investment or not. Therefore, it can be
said that over the years, the company has performed well with increase in the profitability, its
liquidity and solvency ratio that is according to the performance of the industry. Moreover,
the company has managed for increasing its revenue, assets and liquidity position by
executing on their strategic initiatives. Hence, it can be said that this company is of worth
investment.