Petsmart Financial Analysis - 1010 Words

Abstract This paper covers PetSmart and undertakes a financial analysis of this company. The companys cash flow is analyzed, including its working capital, NOPAT and its EVA. There is also a qualitative analysis that leads to the conclusion that PetSmart has reliable financial statements and would make a good investment. Body a. The statement of cash flows provides valuable, reliable information about the nature of PetSmarts cash flows. Overall, this analysis reveals that PetSmart is a reasonably safe investment. b. Free cash flow is the net cash flow from operations less the capital expenditures (Peavler, 2012). Free cash flow is important because it is the cash flow that is beyond what is necessary to maintain assets in place and to finance expected new investments (Richardson, 2006). Free cash flow is used to finance existing operations, expand existing operations, pay down debt, pay out dividends and to maintain existing assets in place. The free cash flow of PetSmart is $400.263 million, according the PetSmarts 10-K for the year ended January 29, 2012. This information is found on page 30. c. PetSmarts operating current assets are found on the balance sheet on the latest 10-K (p.41). They are defined as the current assets that are used to finance the firms activities, therefore excluding short-term investments. For PetSmart, they are as follows: Cash equivalents 342892 Receivables, net 53899 Merchandise inventories 644864 Total $Show MoreRelatedBusiness Report : Marketing Report955 Words   |  4 PagesBusiness Report: PetSmart Introduction PetSmart is a leading retail store that sells specialty pet products and services. It operates more than 1200 stores in North America and is regarded as the biggest player in the pet supplies and services industry. It came to Canada in 1996 and its store is located at Quinn drive Sarnia. They sell consumables (i.e. pet foods and treats), hard goods (i.e. pet accessories) and also live small animals such as birds, hamsters, fish etc. they do not sell dogs orRead MoreSummary Of Phoenix Arizona, Petsmart Essay2300 Words   |  10 PagesHeadquartered in Phoenix Arizona, PetSmart was founded in 1986 by Jim and Janice Dougherty and employs approximately fifty-three thousand employees with an estimated seven billion dollars in annual revenue (Forbes, 2016). Although an immense amount of money, consider Danielle Kurtzleben’s (2013) U.S. News article title which affirmed â€Å"Americans spend over $60 billion annually on their pets† (para 1). 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Who are your company’s competitors? – Tiffany CO., Staples, Tractor Supply co., Petsmart, Dick’s Sporting Goods, Cabella’s, Five Below, Hibbet Sports, Office Depot, Office Max, Barnes Nobel. Market Information: 8. On which stock exchange is your corporation’s stock traded? – New York Stock Exchange (NYSE) 9. What is the currentRead MorePet Servicing Center Essay903 Words   |  4 Pagespercent), according to a 2014 study by Wakefield Research. The opportunity is there. The market entry strategy The market entry strategy for a pet business domestically, here in Greenwood is simple. Our company will piggyback off companies like Petco, Petsmart and others, by offering similar services at a lower price. Yet, in order to compete in today’s world we must enter many foreign markets. Big name companies try to consolidate their orders in order to take advantage of bulk buying; we will do theRead MorePetsmart Analysis5575 Words   |  23 PagesA Financial Ratio Quarterly Trend Analysis of Petsmart, Inc. Stock symbol: PETM Listed on the Nasdaq Prepared for: In partial fulfillment of the requirements of the course: By: 1.0 Introduction This report provides a financial quarterly trend analysis for Petsmart, Inc. The U.S.-based company, together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in North America. The company offers consumables, which include pet foodRead MoreCase Study : Blockbuster And Blackberry Essay1610 Words   |  7 Pagesaccessories for animals in the Midwest. It import and exports animals to 30 states and 22 countries which makes it the biggest distributor in America. It competes in a very small niche of the pet store market, which makes it different than Petco or PetSmart. It legally is able to sell exotic pets from all over the world which has proven to be its biggest asset. According to an Anti-Smuggling Statute violators â€Å"Shall be fined under this title or imprisoned not more than 20 years, or both.† (18 USCA  §