Sears Canada

Background of Sears Canada:-

The deal to create Simpsons-Sears was signed on September 18th, 1952 and the terms were indeed 50-50. Each Company put up $20,000,000 and both shared equal representation on the new Company's Board of Directors. Sears marked its 50th anniversary in 2003. Total revenue for 2003 were $6.223 Billion. In 2006 Sears adopted its Vision statement to “"Sears is committed to improving the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships.". In 2009 it had Revenue of $5,200.6.

Sears Canada is currently providing employment to 31,349 associates at the end of Fiscal 2009. These employees are committed to fulfilling their vision of providing quality services, products and solutions that earn their trust and build lifetime relationships. Today, Sears Canada Inc. is a $6 billion company with a national presence throughout Canada.

Sears offers a variety of services to its customers. Few of them includes travel offices, optical service, income tax services, car rentals, flowers and home installed products and services, Home and electronics, wide range of furniture’s etc. They even offer various ways to buy these services such as personal shopping, Internet shopping, catalogue etc. where they can buy using credit card (Master card, Visa, AMEX, Sears club card, Sears MasterCard). Currently, Sears have over 9 million members.

Sears Canada is committed to its communities by continuing to support programs such as Girls and boys club of Canada, operation wish, and operation enfant Soleil. A major event for 2008 was announced in June of 2007, the “Sears National Kids Cancer ride,” which was world’s longest charity cycling event to raise funds for kids living with and beyond cancer.

Financial Ratio Analysis:-

Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas. Ratio allows the business owner to identify trends in a business and to compare its progress with the performance of others through data published by various sources. Further, it allows owners to determine company’s strength and weaknesses. Following are the financial ratio calculations for Sears Canada Inc.:

Leverage Ratio:- This group of ratios calculates