North West Company: Analyzing Financial Performance Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

North West Company: Analyzing Financial Performance Case Solution

This is just an excerpt. This case is about FINANCE & ACCOUNTING

PUBLICATION DATE: October 26, 2016

In June 2015, a brand-new expert at a mutual fund business needed to examine the financial performance of a prospective financial investment target, the North West Company Inc. (NWC), and make a suggestion. NWC was a food merchant working in underserved market place. The business ran retail places in Western and Northern Canada, Alaska, the South Pacific, and the Caribbean, reporting overall sales of CA$ 1.6 billion in 2014. Twelve years after NWC's preliminary push beyond Canada, global sales represented 35.8 percent of the business's service. Whereas competition amongst rivals and customer option specified the traditional Canadian market, food retail in Northern Canadian markets was identified by minimal offerings, high costs, and couple of rivals. The expert's report had to consist of an evaluation of NWC's success, liquidity, and financial design. The expert was especially thinking about NWC's worldwide procedures; although worldwide growth brought with it the capacity for considerable income development, she questioned whether the earnings capacity was as terrific as that of NWC's procedures in Northern and Western Canada. She likewise understood that if NWC did opt to broaden its global procedures, it would need considerable capital expense. Was NWC a great financial investment chance? Jennifer Alex is associated with St. Francis Xavier University. Mark MacIsaac is associated with St. Francis Xavier University. Neil Maltby is connected with St. Francis Xavier University.