The Great Atlantic &Amp; Pacific Tea Company

1.Problem Statement & Objective The Great Atlantic & Pacific tea Company, Inc. (A&P) suffered from keep loss on the shekels income from 2000 to 2003, which caused a general fearfulness on its high luck of bankruptcy. However, conflicting with analysts estimation, the familys tercet- get monetary results surprisingly exceeded their expectation, and stock determine move 23% to $9.28 per overlap on six propagation middling daily moving in volume. Our objective is to dig by more(prenominal) information from A&Ps financial reports and let suitable recommendations to investors/analyst/debt carrier through further analyzing its transaction strategy and financial ratios by the end of 2003. 2.Frame & Analysis As of January 2004, A&P operated approximately 643 livestocks in 11 states, binding various(a) areas in food market. The supermarket business was highly warlike in terms of low wage margins on sales, and A&P had to compete on change order of magnitude volume of sales and store locations to maximize its profits. In addition, A&P was too challenged by other supermarkets, such as Wal-Mart that expanded cursorily in large scale. In the third quarter of 2003, A&Ps reported results that demonstrate improvement compared with the third quarter of fiscal 2002. Sales at the end of November 2003 change magnitude by 4.9% compared with sales end November 2002.

In addition, the companys gross margin increased, make-up store operating, general and administrative expense slightly increased. In 2003, the company divested multiple assets, selling nine supermarkets in Yankee New England and Wisconsin. It further divested eighter Oclock burnt umber division, totally generating $255.5 million proceeds. A&P is currently in the stage of maturity, intending to decline. From the financial statements, A&Ps receipts was stable around $10.43 billion, fleck net incomes were volatile (most in interdict) from 1994 to 2003. During the period from 1994 to 2003, cash flows from traffic operations were decreasing to negative in 2003. Cash flows from...If you necessitate to get hold a full essay, order it on our website: Ordercustompaper.com

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