Sear Corporation Financial Analysis
Sears’ 2007, 2008, 2009 and 2010 Sales and Profit levels Table.
| K-Mart | Sears Domestic | Sears Canada | Sears Holdings | |
| Sales | $15593 | $22937 | $ 4796 | $ 43326 |
| Profit | $ 352 | $112 | $ 233 | $474 |
| Sales and profit levels for Sears Holdings Retailing Corporation: 2009. | ||||
| K-Mart | Sears Domestic | Sears Canada | Sears Holdings | |
| Sales | $15743 | $23672 | $4628 | $44043 |
| Profit | $190 | $133 | $390 | $713 |
| Sales and profit levels for Sears Holdings Retailing Corporation: 2008. | ||||
| K-Mart | Sears Domestic | Sears Canada | Sears Holdings | |
| Sales | $16219 | $25315 | $5236 | $46770 |
| Profit | $172 | $237 | $367 | $302 |
| Sales and profit levels for Sears Holdings Retailing Corporation: 2007. | ||||
| K-Mart | Sears Domestic | Sears Canada | Sears Holdings | |
| Sales | $17256 | $27845 | $5602 | $50703 |
| Profit | $402 | $784 | $400 | $1586 |
The profit as percentage of sales calculations for Sears in 2007, 2008, 2009 and 2010 respectively (Sears Holdings Corporation, 2011)
2010 Results:
K-Mart 352 / 15593 * 100 =2.26%
Sears Domestic 112 /22937 * 100 =0.49%
Sears Canada 233 / 4796 * 100 =4.86%
Sears Holdings 474 / 43326 * 100 =1.09%
2009 Results:
K-Mart 190 /15743 * 100=1.21%
Sears Domestic 133 / 23672 * 100=0.56%
Sears Canada 390 / 4628 * 100=8.43%
Sears Holdings 713 / 44043 * 100=1.62%
2008 Results:
K-Mart 172 /16219 * 100=1.06%
Sears Domestic 237 / 25315 * 100=0.94%
Sears Canada 367 / 5236 * 100=7.0%
Sears Holdings 302 / 46770 * 100=0.65%
2007 Results:
K-Mart 402 / 17256 * 100=2.33%
Sears Domestic 784 / 27845 * 100=4.54%
Sears Canada 400 / 5602 * 100=7.14%
Sears Holdings 1586 / 50703 * 100=3.13%
Tabulation of profits as percentages of sales
| 2007 | 2008 | 2009 | 2010 | |
| K-Mart | 2.33% | 1.06% | 1.21% | 2.26% |
| Sears Domestic | 4.54% | 0.94% | 0.56% | 0.49% |
| Sears Canada | 7.14% | 7.0% | 8.43% | 4.86% |
| Sears Holdings | 3.13% | 0.65% | 1.62% | 1.09% |
Analysis
An analysis of profit as a percentage of sales volume in terms of dollars offers a good comparison tool to make longitudinal comparisons of profitability in different firms, branches of the same firm or between different investment years. This paper analyzes the profit as percentage of sales from Sears (an international retail outlet for home appliances, apparels, furniture, home machinery and consumables) (Sears Holdings Corporation, 2011). The results shall depict the profitability of across the past four years as well as over an over-view as to how its acquired subsidiaries and branches were performing. This information is essential for any keen investor that would like to make investments into any of the corporation’s ventures.
According to the analyzed results above, Sears Canada is the highest performing branch or rather international part of the company. Its’ profit as percentage of sales are higher that the acquired subsidiaries such as K-Mart and the local branches of the company. This gives a general implication that Sears is performing well abroad more than at home in the U.S. in terms of profitability. Sears domestic seems to show a steady decline that began in 2007, implying that the local market is thriving for sears. On the other hand, the acquired subsidiary (K-Mart) had a decline in 2007, but since then it has been on a steady rise. Sears holding has been undergoing a tumultuous up and down motion with least predictability of trend.
Conclusively, this may imply the Sears is not currently steady and attractive as an investment venture and as a fund manager to this Trust Fund, I would strongly recommend that the investment committee rules out Sears as a potential investment venture that we can buy into, because we do not want to throw caution to the wind, whereas; the data shows the unsteady nature of the giant retail corporation.
References
Sears Holdings Corporation (2011),. Sears Corporation annual report: Form 10-K. Retrieved on 5th May 2011 from http://www.searsholdings.com/invest/financial_info.htm
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