Sears Roebuck And Company Financial Analysis Paper

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Financial Research Report ñ Sears, Roebuck & Company (Sears) Student Name FIN 534 Dr. Name Date Introduction Sears, Roebuck and Company (Sears) was founded in 1893 and commenced its business operations as a catalog trading firm. It was initially listed in the New York Stock Exchange and it currently trading as Searsís holdings (SHLD). Its humble beginnings from a one man company to an international organization that has over two thousand branches across the world makes it a case sturdy for many entrepreneurs. (Drucker,…show more content…
The year 2010 had the highest EPS that was $2 per share while the worst year was the year 2012 when Sears EPS dropped to -29 per share. The profit on margin sales was 30% in the year 2010 and 2011 while in the other remaining years, 2012, 2013 and 2014 it dropped to 20%. Sears holding (SHLD) Profitability Trend analysis Trend20102011201220132014Cost of goods as % of sales74.36421474.6676.2175.777.65Gross margin Trend25.63578625.3423.7924.322.35Net Earnings-48.085112449-70.1-1323-95.6 Leverage ratios This ratio shows how the company is relying on foreign debts to finance its operations. The debts to total assets ratio is arrived at by calculating and dividing the total debts accumulated during the respective financial year with the total assets of that year. For the year 2010 till 2013, the debts/total assets equaled to 10% only 2014 registered 20%. This means that the debts in 2014 increased by another 10%. (Hermanson, Edwards & Invacevich, 2011)

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