Investment Research Assignment

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IS Horizontal Analysis

Sears Holdings Corporation (SHLD)
Period Ending 1-Feb-14 to 31-Jan-15 2-Feb-13 to 1-Feb-14
Total Revenue -13.79% -9.20%
Cost of Revenue -12.34% -6.50%
Gross Profit
Operating Expenses
Research Development - -
Selling General and Administrative -12.40% -11.97%
Non Recurring -72.96% -29.39%
Others -20.63% -11.81%
Total Operating Expenses -14.35% -12.45%
Operating Income or Loss
Income from Continuing Operations
Total Other Income/Expenses Net -60.84% 255.60%
Earnings Before Interest And Taxes 91.09% -3.36%
Interest Expense 23.23% -4.87%
Income Before Tax 73.35% -3.76%
Income Tax Expense -13.19% 227.27%
Minority Interest -151.41% -300.81%
Net Income From Continuing Ops 23.22% 46.77%
Non-recurring Events - -
Discontinued Operations - -
Extraordinary Items - -
Effect Of Accounting Changes - -
Other Items - -
Net Income 23.22% 46.77%
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares

IS Vertical Analysis

Sears Holdings Corporation (SHLD)
Period Ending 31-Jan-15 1-Feb-14 2-Feb-13
Total Revenue 100% 100% 100%
Cost of Revenue 77.09% 75.81% 73.62%
Gross Profit 22.91% 24.19% 26.38%
Operating Expenses
Research Development 0 0 0
Selling General and Administrative 26.35% 25.93% 26.75%
Non Recurring 0.20% 0.64% 0.83%
Others 1.86% 2.02% 2.08%
Total Operating Expenses 28.41% 28.60% 29.66%
Operating Income or Loss -4.83% -2.56% -2.10%
Income from Continuing Operations
Total Other Income/Expenses Net 1.10% 2.42% 1.41%
Earnings Before Interest And Taxes -4.40% -1.98% -1.86%
Interest Expense 1.00% 0.70% 0.67%
Income Before Tax -5.40% -2.69% -2.53%
Income Tax Expense 0.40% 0.40% 0.11%
Minority Interest 0.41% -0.69% 0.31%
Net Income From Continuing Ops -5.39% -3.77% -2.33%
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income -5.39% -3.77% -2.33%
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares -5.39% -3.77% -2.33%

BS Horizontal Analysis

Sears Holdings Corporation (SHLD)
Period Ending 1-Feb-14 to 31-Jan-15 2-Feb-13 to 1-Feb-14
Assets
Current Assets
Cash And Cash Equivalents -75.92% 67.96%
Short Term Investments - -
Net Receivables -22.42% -12.91%
Inventory -29.73% -6.93%
Other Current Assets -27.84% -26.43%
Total Current Assets -34.56% -3.30%
Long Term Investments
Property Plant and Equipment -17.52% -10.89%
Goodwill -29.02% 0.00%
Intangible Assets -26.42% -1.08%
Accumulated Amortization - -
Other Assets -21.80% -10.89%
Deferred Long Term Asset Charges - -
Total Assets -27.67% -5.58%
Liabilities
Current Liabilities
Accounts Payable 1.53% -76.62%
Short/Current Long Term Debt -40.91% 232.29%
Other Current Liabilities -15.23% -5.17%
Total Current Liabilities -25.77% -2.72%
Long Term Debt 9.74% 45.86%
Other Liabilities 7.67% -18.66%
Deferred Long Term Liability Charges -35.53% 16.13%
Minority Interest -98.65% 6.47%
Negative Goodwill -
Total Liabilities -14.30% -0.38%
Stockholders' Equity
Misc Stocks Options Warrants -
Redeemable Preferred Stock -
Preferred Stock -
Common Stock 0.00% 0.00%
Retained Earnings 350.42% -154.24%
Treasury Stock -0.23% -0.12%
Capital Surplus -1.17% 0.00%
Other Stockholder Equity 81.74% -23.44%
-
Total Stockholder Equity -154.69% -36.88%
Total Liabilities and Stockholder Equity -27.67% -5.58%
Net Tangible Assets

BS Vertical Analysis

Sears Holdings Corporation (SHLD)
Period Ending 31-Jan-15 1-Feb-14 2-Feb-13
Assets
Current Assets
Cash And Cash Equivalents 1.89% 5.68% 3.20%
Short Term Investments
Net Receivables 3.25% 3.03% 3.28%
Inventory 37.42% 38.52% 39.08%
Other Current Assets 1.82% 1.83% 2.35%
Total Current Assets 44.39% 49.06% 47.91%
Long Term Investments
Property Plant and Equipment 33.68% 29.54% 31.30%
Goodwill 2.04% 2.08% 1.96%
Intangible Assets 15.88% 15.61% 14.90%
Accumulated Amortization
Other Assets 4.02% 3.72% 3.94%
Deferred Long Term Asset Charges
Total Assets 100% 100% 100%
Liabilities
Current Liabilities
Accounts Payable 6.51% 4.64% 18.73%
Short/Current Long Term Debt 17.50% 21.42% 6.09%
Other Current Liabilities 21.99% 18.77% 18.69%
Total Current Liabilities 46.00% 44.82% 43.51%
Long Term Debt 23.54% 15.52% 10.05%
Other Liabilities 32.20% 21.63% 25.11%
Deferred Long Term Liability Charges 5.41% 6.07% 4.94%
Minority Interest 0.05% 2.43% 2.16%
Negative Goodwill
Total Liabilities 93.28% 110.53% 116.61%
Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock 0.01% 0.01% 0.01%
Retained Earnings -16.37% -2.63% 4.58%
Treasury Stock -45.04% -32.65% -30.87%
Capital Surplus 69.57% 50.92% 48.08%
Other Stockholder Equity -15.37% -6.12% -7.54%
Total Stockholder Equity -7.20% 9.52% 14.25%
Total Liabilities and Stockholder Equity 100% 100% 100%
Net Tangible Assets

CF Horizontal Analysis

Sears Holdings Corporation (SHLD)
Period Ending 31-Jan-15 to 1-Feb-14 1-Feb-14 to 2-Feb-13
Net Income -23.22% -46.77%
Operating Activities, Cash Flows Provided By or Used In
Depreciation -20.63% -11.81%
Adjustments To Net Income -135.52% 550.82%
Changes In Accounts Receivables - -
Changes In Liabilities -71.35% -164.29%
Changes In Inventories 144.62% 4.45%
Changes In Other Operating Activities -87.13% -32.46%
Total Cash Flow From Operating Activities -25.07% -266.01%
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures -17.93% -12.96%
Investments -100.00% -105.41%
Other Cash flows from Investing Activities -40.00% 87.03%
Total Cash Flows From Investing Activities -50.75% 247.64%
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid -50.75% 366.00%
Sale Purchase of Stock -
Net Borrowings -114.97% -469.45%
Other Cash Flows from Financing Activities -
Total Cash Flows From Financing Activities -68.40% -3440.74%
Effect Of Exchange Rate Changes -92.11% -3900.00%
Change In Cash and Cash Equivalents -285.68% -403.62%

Ratios

Sears Holdings Corporation (SHLD)
Liquidity 31-Jan-15 1-Feb-14 2-Feb-13
Current Ratio 0.96 1.09 1.10
Acid Test 0.15 0.24 0.20
Activity
Inventory Turnover 4.87 3.90 3.88
Avg Age of Inventory 75.02 93.59 94.02
Avg Collection Period 5.02 5.58 5.82
Avg Payment Period 150.12 174.97
Debt
Debt Ratio 1.07 0.90 0.86
Debt to Equity -14.89 9.50 6.02
Times Interest Earned -10.98 -4.99 -16.89
Profitablity
Operating Margin -0.048 -0.026 -0.021
Net Profit Margin -0.054 -0.038 -0.023
Return on Total Assets -10.39% -3.93% -3.84%
ROA -12.73% -7.47% -4.81%
ROE -1.77 -0.78 -0.34
Book Value -0.01 0.02 0.03
PE -1.68

Current Ratio 42035 41671 41307 0.96494404213298224 1.0945632254123396 1.1011409555502734

Operating Margin -4.8336431822552726E-2 -2.5616226373383441E-2 -2.1026747628845287E-2

Income Statement

Sears Holdings Corporation (SHLD)
Period Ending 31-Jan-15 1-Feb-14 2-Feb-13
Total Revenue 31,198,000 36,188,000 39,854,000
Cost of Revenue 24,049,000 27,433,000 29,340,000
Gross Profit 7,149,000 8,755,000 10,514,000
Operating Expenses
Research Development -   -   -  
Selling General and Administrative 8,220,000 9,384,000 10,660,000
Non Recurring 63,000 233,000 330,000
Others 581,000 732,000 830,000
Total Operating Expenses 8,864,000 10,349,000 11,820,000
Operating Income or Loss -1,508,000 -927,000 -838,000
Income from Continuing Operations
Total Other Income/Expenses Net 343,000 876,000 563,000
Earnings Before Interest And Taxes -1,372,000 -718,000 -743,000
Interest Expense 313,000 254,000 267,000
Income Before Tax -1,685,000 -972,000 -1,010,000
Income Tax Expense 125,000 144,000 44,000
Minority Interest 128,000 -249,000 124,000
Net Income From Continuing Ops -1,682,000 -1,365,000 -930,000
Non-recurring Events
Discontinued Operations -   -   -  
Extraordinary Items -   -   -  
Effect Of Accounting Changes -   -   -  
Other Items -   -   -  
Net Income -1,682,000 -1,365,000 -930,000
Preferred Stock And Other Adjustments -   -   -  
Net Income Applicable To Common Shares -1,682,000 -1,365,000 -930,000
Source Yahoo Finance

Balance Sheet

Sears Holdings Corporation (SHLD)
Period Ending 31-Jan-15 1-Feb-14 2-Feb-13
Assets
Current Assets
Cash And Cash Equivalents 250,000 1,038,000 618,000
Short Term Investments -   -   -  
Net Receivables 429,000 553,000 635,000
Inventory 4,943,000 7,034,000 7,558,000
Other Current Assets 241,000 334,000 454,000
Total Current Assets 5,863,000 8,959,000 9,265,000
Long Term Investments -   -   -  
Property Plant and Equipment 4,449,000 5,394,000 6,053,000
Goodwill 269,000 379,000 379,000
Intangible Assets 2,097,000 2,850,000 2,881,000
Accumulated Amortization -   -   -  
Other Assets 531,000 679,000 762,000
Deferred Long Term Asset Charges -   -   -  
Total Assets 13,209,000 18,261,000 19,340,000
Liabilities -951,000
Current Liabilities
Accounts Payable 860,000 847,000 3,623,000
Short/Current Long Term Debt 2,311,000 3,911,000 1,177,000
Other Current Liabilities 2,905,000 3,427,000 3,614,000
Total Current Liabilities 6,076,000 8,185,000 8,414,000
Long Term Debt 3,110,000 2,834,000 1,943,000
Other Liabilities 4,253,000 3,950,000 4,856,000
Deferred Long Term Liability Charges 715,000 1,109,000 955,000
Minority Interest 6,000 444,000 417,000
Negative Goodwill -   -   -  
Total Liabilities 14,160,000 16,522,000 16,585,000
Stockholders' Equity
Misc Stocks Options Warrants -   -   -  
Redeemable Preferred Stock -   -   -  
Preferred Stock -   -   -  
Common Stock 1,000 1,000 1,000
Retained Earnings -2,162,000 -480,000 885,000
Treasury Stock -5,949,000 -5,963,000 -5,970,000
Capital Surplus 9,189,000 9,298,000 9,298,000
Other Stockholder Equity -2,030,000 -1,117,000 -1,459,000
Total Stockholder Equity -951,000 1,739,000 2,755,000
Total Liabilities and Stockholder Equity 13,209,000 18,261,000 19,340,000
Net Tangible Assets -3,317,000 -1,490,000 -505,000
Source Yahoo Finance

Statement of Cash Flow

Sears Holdings Corporation (SHLD)
Period Ending 31-Jan-2015 1-Feb-2014 2-Feb-2013
Net Income -1,682,000 -1,365,000 -930,000 -46.77%
Operating Activities, Cash Flows Provided By or Used In
Depreciation 581,000 732,000 830,000
Adjustments To Net Income 141,000 -397,000 -61,000
Changes In Accounts Receivables -   -   -  
Changes In Liabilities -634,000 -370,000 -140,000
Changes In Inventories 1,091,000 446,000 427,000
Changes In Other Operating Activities -756,000 -404,000 -305,000
Total Cash Flow From Operating Activities -1,387,000 -1,109,000 -303,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures -270,000 -329,000 -378,000
Investments 0 -2,000 37,000
Other Cash flows from Investing Activities 597,000 995,000 532,000
Total Cash Flows From Investing Activities 327,000 664,000 191,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid -   -233,000 -50,000
Sale Purchase of Stock -   -   -10,000
Net Borrowings -172,000 1,149,000 -311,000
Other Cash Flows from Financing Activities 484,000 -   347,000
Total Cash Flows From Financing Activities 285,000 902,000 -27,000
Effect Of Exchange Rate Changes -3,000 -38,000 1,000
Change In Cash and Cash Equivalents -778,000 419,000 -138,000
Source Yahoo finance