Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 9B13BC021
Simplified Chinese language
Published by: Ivey Publishing
Originally published in: 2014
Version: 2013-12-06
Revision date: 27-Nov-2014
Length: 10 pages
Data source: Published sources

Abstract

This is a Simplified Chinese version. CP 7-Eleven is a prominent retail chain in Thailand. The analysis of the financial statements for the year 2011 revealed that while the earnings per share increased, the return on equity (ROE) declined. The company had negative working capital. It exerted strong bargaining power over its suppliers and customers and had efficient inventory management. It had been accumulating cash and other liquid assets over the last few years and it expanded in a well-planned manner, with almost 500 new stores every year. However, the company was viewed as having a lot of 'fat' on its balance sheet. It was necessary to trim the fat and enhance ROE. The company needed to focus on strategies for future growth.
Location:
Industry:
Size:
Large
Other setting(s):
2011

About

Abstract

This is a Simplified Chinese version. CP 7-Eleven is a prominent retail chain in Thailand. The analysis of the financial statements for the year 2011 revealed that while the earnings per share increased, the return on equity (ROE) declined. The company had negative working capital. It exerted strong bargaining power over its suppliers and customers and had efficient inventory management. It had been accumulating cash and other liquid assets over the last few years and it expanded in a well-planned manner, with almost 500 new stores every year. However, the company was viewed as having a lot of 'fat' on its balance sheet. It was necessary to trim the fat and enhance ROE. The company needed to focus on strategies for future growth.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2011

Related