With this case, a comparison is made between three firms indifferent industries using net
profit margin, total asset turnover and current ratio.
Net Profit Margin Total Asset Turnover Current Ratio
Firm A 1.67% 3.40 times 1.16
Firm B 21.48% 1.06 times 2.01
Firm C 4.44% 1.49 times 1.71
(CASE 8-6 CONTINUED)
1. Apple
Fiscal year 2010 ended September 25, 2010, and consisted of 52weeks
“Apple, Inc. and its wholly-owned subsidiaries (collectively“Apple” or the “Company”)
designs, manufactures and markets a range of personal computers,mobile
communication and media devices, and portable digital musicplayers, and sells a variety
of related software, services, peripherals, networking solutions,and third-party digital
content and applications.” 10-K
Source: Apple, 2010 10-K
2. Costco Wholesale Corporation
Fiscal year ended August 29, 2010, and consisted of 52 weeks
“We operate membership warehouses based on the concept thatoffering our members
low prices on a limited selection of nationally branded andselected private-label
products in a wide range of merchandise categories will producehigh sales volumes and
rapid inventory turnover.” 10-K
Source: Costco Wholesale Corporation 2010 10-K
3. Target Corporation
Fiscal year 2010 ended January 29, 2011, and consisted of 52weeks
“Our Retail Segment includes all of our merchandising operations,including our fully
integrated online business. We offer everyday essentials andfashionable, differentiated
merchandise at discounted prices.” 10-K
Source: Target Corporation 2010 10-K
Required
a. Which firm is Firm A? Comment on your reasons.
b. Which firm is Firm B? Comment on your reasons.
c. Which firm is Firm C? Comment on your reasons.
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