This case focuses on the use of financial ratios. Two retailers, Sears
1. Describes key components of the case study in a concise summary, highlighting key areas.
2. Based on your findings, how do the retailing strategies of Sears and Wal-Mart differ? Explain.
3. Wal-Mart's average return on equity for the 1997 fiscal year was 19.7% [$3,525/$18,503+17,143)/2],
4. What ratios are most important in assessing current and predicting future value creation for Sears? For Wal-Mart?
5. How useful are financial ratios in evaluating the current performance of each of the two companies?
6. How useful are financial ratios in comparing the relative performance of these two companies?