A Financial Overview of the Canadian Tire Corporation

Topics: Revenue, Canadian Tire, Retailing Pages: 15 (3955 words) Published: March 7, 2016


CANADIAN TIRE
SECTION – A EXECUTIVE SUMMARY

Canadian Tire Corporation have more than 490 retail store and 420 FGL sports and Mark’s store. Though it is a retail store but it not competition with Walmart but Loblaw’s is a head to head competitor of Canadian tire. Target Canada was also considered to be a competitor of Canadian tire, automotive sector is a backbone of Canadian tire. We found that companies revenue increasing when its competitors target Canada shutdown. FGL contributed a big part to CTC Ltd. Revenue, Canadian Tire is considered to be one of the Canada’s convenient retail store it distribute from coast to coast. Digital technology and e-commerce will help the company to expand in the near future.

Canadian tire has a good revenue and it was continuously increasing from 2012 to 2014, with increase of 1 billion become 12.4billion in 2014. Gross profit also show a positive change of 8.7% from year 2013 – 2014. Net income also increases by 13.7% compared to previous year. EPS of Canadian Tire is $8.66, currently CTC.A is trading at $131.79 at TSX.

As there was a rapid increase in the stock price of Canadian tire, their cash dividend per share also increased from $1.4 to $2.1 from year 2012 to 2014. Canadian tire is giving a cash dividend if you are looking for dividend then you can invest, on the same side their stock price is also increasing. So long term investment would also be beneficial for the investors.

SECTION – B
I. DESCRIPTON OF COMPANY
Canadian tire is a retail store first open in Toronto in 1922 as Hamilton tire and Garage LTD. Later in 1923 it become Canadian Tire Corporation. Canadian Tire Corporation is a family business that include Canadian Tire, Part Source, petroleum, FGL sports, Mark’s, financial services division and CT REIT. The company has three 3 reportable segment for financial reporting services: Retail, CT REIT and financial services. Canadian Tire is a MERCHANDISING – WHOLESALE DISTRIBUTORS With more than 490 retail store and online community, served from coast to coast and they better understand the need of Canadian consumers. Canadian Tire acquired the Forzani Group Ltd. In 2011 which is the largest national sporting goods retailers in Canada. FGL banners include Sports Check, National Sports, Pro Hockey Life, Sports Experts, Intersport and S3. They have more than 420 stores across Canada which provide product and services to improve sports person skill level. Now company expended its business in apparel industry by acquiring MARK’S stores which give confidence to look and feel best to Canadian. Started in 1922 by J. W AND A.J. BILLES Brother and co-founder, open first store from their saving of $1800. In 1923 it became officially incorporated and in 1995 Canadian tire became first Non-Deposit Financial institution worldwide to launch MasterCard option. Firstly, Canadian Tire Sell Variety of products such as, Automotive, Tools Hardware, Kitchen, Tire& wheels but now company expanded its business in apparel industry by acquiring MARK’S stores which give confidence to look and feel best to Canadian. With 11,225 full time employees and 17,037part time employees. In 2015, Canadian tire holds total assets of $14533.2 million generating Revenue of 12,462.9 million in 2015. 90% of the population is 10 Minutes’ drive to Canadian tire stores. 40% of Canadian shops at Canadian tires every week. (Canadian Tire Corporation, 2014) Management Hierarchy

Board of Directors
Maureen J. Sabia
Non-Executive Chairman of the Board, Canadian Tire Corporation Limited

Stephen G. Wetmore
Non-Executive Deputy Chairman of the Board, Canadian Tire Corporation Limited

Owen G. Billes
President, Sandy Mc Tyre Retail Ltd., which operates a Canadian Tire store

Ronald L. Goldsberry
Corporate Director

Michael B. Medline
President and CEO, Canadian Tire Corporation Limited

II. COMPETITIVE ENVIRONMENT

Canadian tire's automotive business include auto...
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