Compare financial strategies of the retailer and key competitors. In many cases, you will be dealing with a subsidiary or private company for which financial data may not be publicly available. In those cases, 7 make your comparisons more qualitative: “store X appears to have a greater inventory turnover than store Y because…” Rather than “…enables store X to turn its inventory 30% faster than store Y”.
Explain, from an operational perspective, why you would expect performance (gross margin percentage, expenses-to-sales ratio, net profit margin, inventory turnover, and asset turnover) to be different for the two stores. Describe the firm’s business model and how it creates, delivers and captures customer value. Based on your analysis, state whether you think the firm is a good investment.