Professional Documents
Culture Documents
20k-200k sq ft
5k-20k sq ft
2k-20k sq ft
Location
Strip malls or
standalone
Strip or enclosed
malls
Strip or enclosed
malls
Revenue
> $ 5 million
< $ 1 million
Large Retailers
Broad range of
merchandise at low prices
Used analytics for layout
planning
Small Retailers
Connecting with the community through sponsoring
local events
Knowledgeable salespeople offering technical
expertise and customer support
Inventory
Financing
was
importan
t
Higher
Lower
Assets
Higher
Lower
Lower
Higher
Higher
Lower
Same
Same
Higher
Lower
Lower
Higher
Same
Same
Debt/Assets
Higher
Lower
Delivery Tractors,
Management information
system hardware and point-ofsale equipment
Future Capital
Leases (In
thousands)
2069
866
479
266
71
3498
PV Payment
(in thousands)
2069
786
395
199
48
3498
10.12%
Operating Leases
Year Ending
2011
2012
2013
2014
2015
Thereafter
PV of
minimum lease
payments
Operating Leases
(In thousands)
61998
57994
53451
45691
34522
70113
PV Payment
(in thousands)
61998
52667
44082
34221
23480
428132
644579
After calculating the difference in payments of a capital lease versus the current operating
leases, we found a ~$650 million understatement of liabilities. This is a significant
number, and can be considered an aggressive accounting strategy
The D/E changes from 0.50 to 4.78. This is an indicator of an increased riskiness of the firm