Select the best answer. Based upon a comparison of Table 1 (2011 figures) and Table 2 (2017...

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Finance

Select the best answer. Based upon a comparison of Table1 (2011 figures) and Table 2

(2017 figures), it is fair tosay______________.

Table 1: Selected Financials

Discount Retailing Industry 2011

($ in '000s except per share) Amazon CostCo TargetWalmart

Net Sales or Revenues $48,077 $88,915 $69,865$446,950

Gross Profit Margin-Merch 11.2% 10.7% 30.1%24.5%

Operating Margin 1.8% 2.7% 7.6% 5.9%

Net Margin 1.3% 1.6% 4.2% 3.7%

EPS $1.37 $3.30 $4.28 $4.52

Return on Average Assets 2.8% 5.8% 6.5%8.8%

Table 2: Discount Retailing Industry 2017

($ in 000s) except per share Amazon CostCo TargetWalmart

Net Sales or Revenues $177,866 $129,025 $71,879$500,343

Gross Profit Margin-Merch 5.6% 11.3% 28.9%25.4%

Operating Margin 2.3% 3.2% 6.0% 4.1%

Net Margin 1.7% 2.1% 4.1% 2.0%

EPS $6.32 $6.08 $5.33 $3.28

Return on Average Assets 2.8% 7.7% 7.7%4.9%


A. Walmart had a competitive advantage in 2017 versusAmazon, CostCo, and Target

B. Based upon ROAA, Costco and Target were atcompetitive disadvantages in 2011 but had

become the industry leaders versus their rivals -Amazon, and Walmart by 2017.

C. Amazon's astonishing 24% average annual revenuegrowth from 2011-2017 shows that the

company has a competitive advantage relative to itsmajor competitors - Walmart, Target and

Costco.

D. Walmart maintained its competitive advantage, butAmazon narrowed "the gap" between the

two companies significantly over theperiod.

Answer & Explanation Solved by verified expert
3.8 Ratings (514 Votes)
Amazons astonishing 24 average annual revenue growth from 20112017 shows that the company has a competitive advantage relative to its major competitors Walmart Target and Costco which is Option C Explanation The average annual    See Answer
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Select the best answer. Based upon a comparison of Table1 (2011 figures) and Table 2(2017 figures), it is fair tosay______________.Table 1: Selected FinancialsDiscount Retailing Industry 2011($ in '000s except per share) Amazon CostCo TargetWalmartNet Sales or Revenues $48,077 $88,915 $69,865$446,950Gross Profit Margin-Merch 11.2% 10.7% 30.1%24.5%Operating Margin 1.8% 2.7% 7.6% 5.9%Net Margin 1.3% 1.6% 4.2% 3.7%EPS $1.37 $3.30 $4.28 $4.52Return on Average Assets 2.8% 5.8% 6.5%8.8%Table 2: Discount Retailing Industry 2017($ in 000s) except per share Amazon CostCo TargetWalmartNet Sales or Revenues $177,866 $129,025 $71,879$500,343Gross Profit Margin-Merch 5.6% 11.3% 28.9%25.4%Operating Margin 2.3% 3.2% 6.0% 4.1%Net Margin 1.7% 2.1% 4.1% 2.0%EPS $6.32 $6.08 $5.33 $3.28Return on Average Assets 2.8% 7.7% 7.7%4.9%A. Walmart had a competitive advantage in 2017 versusAmazon, CostCo, and TargetB. Based upon ROAA, Costco and Target were atcompetitive disadvantages in 2011 but hadbecome the industry leaders versus their rivals -Amazon, and Walmart by 2017.C. Amazon's astonishing 24% average annual revenuegrowth from 2011-2017 shows that thecompany has a competitive advantage relative to itsmajor competitors - Walmart, Target andCostco.D. Walmart maintained its competitive advantage, butAmazon narrowed "the gap" between thetwo companies significantly over theperiod.

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