Read the attached mini case of Carrefour company and answer the following questions 1. Suppose...
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Read the attached mini case of Carrefour company and answer the following questions 1. Suppose that in the next few years Carrefour wants to expand its shops to out of the city locations with access to highways and inexpensive land to construct its stores. Discuss how will you analyze the financial position of the company if you are the financial analyst for Carrefour? Hint: refer to the 4-step process in financial statement analysis and valuation. 2. Analyze the business environment of Carrefour Company using the five porter's forces of competitive analysis. 3. Analyze the credit risk position of the company for 2020 and 2019 using the following ratios: (i) Time-interested earned ratio (ii) (iii) EBITDA coverage ratio Cash from operations to total debt Total liabilities to equity (iv) Instructions: The assignment should include an introduction, discussion and conclusion sections. Company Background Carrefour is one of the largest hypermarket and supermarket chains in the world. Majid Al Futtaim launched the brand in the UAE in 1995, which is the exclusive franchisee to operate Carrefour in 38 countries across Middle East, Africa and Asia. Carrefour currently operates 31 hypermarkets, 73 supermarkets and has over 9200 employees. Carrefour's key to success is the hypermarket, the all-in-one shop that sells everything from bananas to baby strollers at discount prices. The supermarket received a great acceptance by UAE consumers and the company grown rapidly since its inception at an average annual sales growth of 15%. Carrefour controls 28% of the retail market in the UAE and its strategy is to increase its market share to 35% in three years. Carrefour's strategy is to adapt to the cultural importance of shopping malls and create a "city within a city by being located inside a mall with entertainment centers, cinemas, food courts and other convenience amenities. Market share of Supermarket companies 6.09 69 4.ORX routymarket share l.... 3 25 1.56 1.299 1.16% 1 0.85 0.46% 0.4% 0.34% O UH e-Com Carreto SORS W COND A Sales Cho Sol Les Nos hall co- The percentages are as share of the total sales in the economy. Read the attached mini case of Carrefour company and answer the following questions 1. Suppose that in the next few years Carrefour wants to expand its shops to out of the city locations with access to highways and inexpensive land to construct its stores. Discuss how will you analyze the financial position of the company if you are the financial analyst for Carrefour? Hint: refer to the 4-step process in financial statement analysis and valuation. 2. Analyze the business environment of Carrefour Company using the five porter's forces of competitive analysis. 3. Analyze the credit risk position of the company for 2020 and 2019 using the following ratios: (i) Time-interested earned ratio (ii) (iii) EBITDA coverage ratio Cash from operations to total debt Total liabilities to equity (iv) Instructions: The assignment should include an introduction, discussion and conclusion sections. Company Background Carrefour is one of the largest hypermarket and supermarket chains in the world. Majid Al Futtaim launched the brand in the UAE in 1995, which is the exclusive franchisee to operate Carrefour in 38 countries across Middle East, Africa and Asia. Carrefour currently operates 31 hypermarkets, 73 supermarkets and has over 9200 employees. Carrefour's key to success is the hypermarket, the all-in-one shop that sells everything from bananas to baby strollers at discount prices. The supermarket received a great acceptance by UAE consumers and the company grown rapidly since its inception at an average annual sales growth of 15%. Carrefour controls 28% of the retail market in the UAE and its strategy is to increase its market share to 35% in three years. Carrefour's strategy is to adapt to the cultural importance of shopping malls and create a "city within a city by being located inside a mall with entertainment centers, cinemas, food courts and other convenience amenities. Market share of Supermarket companies 6.09 69 4.ORX routymarket share l.... 3 25 1.56 1.299 1.16% 1 0.85 0.46% 0.4% 0.34% O UH e-Com Carreto SORS W COND A Sales Cho Sol Les Nos hall co- The percentages are as share of the total sales in the economy
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