Description: Canadian Tire is cutting its capital expenditures for 2017 as it shifts its strategic focus to online sales and away from bricks and mortar. Part of this strategy will see Canadian Tire placing increased reliance on private label brands like its Mastercraft tools. Meanwhile, investors seem to like Canadian Tire’s performance as earnings per share beat the estimates of the analysts.
Date: November 10, 2016
1) What do you think of Canadian Tire’s plans to emphasize e-commerce?
2) Chapter 8 of Wiley’s Financial Accounting: Tools for Business Decision Making discusses Canadian Tire’s management of its accounts receivable. What do you think might change about its receivables as it moves towards more e-commerce?
3) Where in Wiley’s Financial Accounting: Tools for Business Decision Making can you learn about earnings per share? What does this ratio indicate?