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Spreadsheet for product 8B19B008.

Spreadsheet for product 9B19B008.

On January 20, 2017, Moody’s Investors Service, an American credit rating agency, downgraded the Corporate Family Rating for Sears Holdings Corporation from Caa1 to Caa2, stating that the company did not have enough money to stay in business and was relying on outside funding or sale of assets to sustain operations. The leading US retail chain had a revenue turnover of US$22.14 billion in Fiscal Year (FY) 2016–17. However, beginning in FY 2011–12, it had suffered losses year after year. Its stock had fallen 38 per cent between April 2016 and April 2017. The retail chain’s majority shareholder, chair, and chief executive officer was making some changes, but critics questioned his motives and retail acumen. With falling share prices, continuous losses, decreasing assets, and a decided shift in the industry away from traditional retail, it seemed that it would be only a matter of time before Sears Holdings Corporation reached its end. In light of its poor financial performance and consecutive losses on a yearly basis, a new Master of Business Administration graduate and junior analyst was assigned the task of analyzing the retail chain’s financial status and assessing the possibility of its bankruptcy.

On January 20, 2017, Moody's Investors Service, an American credit rating agency, downgraded the Corporate Family Rating for Sears Holdings Corporation from Caa1 to Caa2, stating that the company did not have enough money to stay in business and was relying on outside funding or sale of assets to sustain operations. The leading US retail chain had a revenue turnover of US$22.14 billion in Fiscal Year (FY) 2016-17. However, beginning in FY 2011-12, it had suffered losses year after year. Its stock had fallen 38 per cent between April 2016 and April 2017. The retail chain's majority shareholder, chair, and chief executive officer was making some changes, but critics questioned his motives and retail acumen. With falling share prices, continuous losses, decreasing assets, and a decided shift in the industry away from traditional retail, it seemed that it would be only a matter of time before Sears Holdings Corporation reached its end. In light of its poor financial performance and consecutive losses on a yearly basis, a new Master of Business Administration graduate and junior analyst was assigned the task of analyzing the retail chain's financial status and assessing the possibility of its bankruptcy.

Student spreadsheet to case W19331

Instructor Spreadsheet for product 8B17B004.

Student spreadsheet for product 9B17B004.

In 2016, Tesco PLC, a leading U.K. retail chain, had undergone tremendous financial turmoil. Profitability had been decreasing since 2013 with heavy losses registered during fiscal year (FY) 2014/15. Net profit had decreased by 304 per cent from 2012 to 2015. However, after the appointment of a new chief executive officer in 2014, Tesco managed to register a net profit of £138 million in FY 2015/16: an astonishing turnaround. Evidently, Tesco was recovering from its losses, but the share price of the company had fallen by more than 20 per cent from 2015 to 2016. What course of action would enable Tesco to maintain and improve its value for shareholders? What areas should the chief executive officer focus on in order to change Tesco’s financial performance?

Student spreadsheet for case W17163.

In 2016, Tesco PLC, a leading U.K. retail chain, had undergone tremendous financial turmoil. Profitability had been decreasing since 2013 with heavy losses registered during fiscal year (FY) 2014/15. Net profit had decreased by 304 per cent from 2012 to 2015. However, after the appointment of a new chief executive officer in 2014, Tesco managed to register a net profit of £138 million in FY 2015/16: an astonishing turnaround. Evidently, Tesco was recovering from its losses, but the share price of the company had fallen by more than 20 per cent from 2015 to 2016. What course of action would enable Tesco to maintain and improve its value for shareholders? What areas should the chief executive officer focus on in order to change Tesco's financial performance?