Financial analysis and interpretation of sams club

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Financial analysis and interpretation of Sam's Club Company

Overview

Sams's club is a wholesale company with discount bulk and a diversity of product. It runs its services by offering a variety of products from a large warehouse. It has a very important array of items which include food, drinks, households' items, clothing, electronics, automobile, house and garden supply, pharmacy and gas stations. However in order to shop there customers need to have a membership with what they are going to shop in the store.

Sam's club has about 620 membership warehouse in 48 U.S states and Puerto Rico. The company can rank in sales volume among warehouse clubs with $56.828 billion in sales. It employs a large number of people worldwide and they are known as having over 1500 suppliers who follow correctly the policies and supplies rules. Sam's club carries high qualities products and services with a diverse product sales and low wholesales bulk prices. It operates also efficiently with direct low cost of operations and maintains profitability and lower gross margin compared to its competitors.

To maintain low prices is just going directly to the manufacturer and shipping to stores in a 24 hours range within its own network of warehouse. There are such quick shipping which can have a negative impact on the company's capital because of the conversion of its goods to cash before the payments are even due. Sam's club membership features pride on members satisfaction as they are able to return the goods and get the full refund/exchange without any questions or problems.

Sam's club's one of a direct competitor is Costco which is known for providing a wide selection of merchandise with the largest membership only warehouse club in the U.S in 2015. "Costco has thrived over the last five years. While competitors lost customers to internet and weathered a wave of investors' pessimism, Costco's sales have grown 39 percent and its stock price has doubled since 2009. The hot streak continued through last year's retirement of widely admired Officer Jim Sinegal. (Costco CEO Craig Jelinek June 7, 2013).

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Reference no: EM131234913

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