Strategic Management Case Study
Tony Gauvin, UMFK
4/11/2020 Copyright 2012, Tony Gauvin, UMFK 1

Company Overview
A Brief history of Family Dollar
Existing Mission and Vision
Existing Objectives and Strategies
Current Issues
New Mission and Vision
External Assessment
Industry analysis
Opportunities and threats
EFE Matrix
CPM Matrix
Internal Assessment
Strengths and weaknesses
Organizational Chart
Financial Condition
IFE Matrix
3/30/2009
Strategy Formulation
SWOT Matrix
Space Matrix
IE Matrix
Grand Strategy Matrix
Matrix Analysis
QSPM Matrix
Strategic Plan for the Future
Objectives
Strategies
Implementation Issues
EPS/EBIT
Projected Financials
Evaluation
Balanced Scorecard
Key future ratios
Family Dollar Update
All Logos and Pictures from Family Dollar Media Kit
© Tony Gauvin, UMFK, 2009 2

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–
–
–
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• By 1970’s, 100 th store in Brevard, NC and had gone Public
– 30% per year
– Single distribution center in Charlotte delivering to Carolinas and neighboring states
– 1982, 500 th store in in Brunswick, GA
• 1980’s – War with Wal-Mart
– Added 100 stores per year in areas Wal-mart would not, stay within 3 miles of customer base (Big Box vs. Small box)
– Everyday Low-price guarantee  low margins
• 1990 -> 2000’s Supply Chain Management
– New Distribution centers and POS systems
– 2003 – 5000 th store in Jacksonville FL
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•
th
•
– Lags Dollar General 22%
•
•
•
– “Female head of household in her mid 40’s making less than $40,000/year”
•
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Family’s Dollar’s mission states the three most important relationships to making our business successful; our customers, our associates, and our investors.
For our customers, we offer a compelling place to work by providing convenience and low prices;
For our associates, we offer a compelling place to work by providing exceptional opportunities and rewards for achievement;
For our investors, we offer a compelling place to invest by providing outstanding returns
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4/11/2020
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At Family Dollar, we strive to bring the best to our customers, offering everyday items at everyday low prices (1). We seek to meet our customer’s basic needs, providing them with common household products (2) at affordable prices while maintaining our growth and profitability to our loyal stockholders (5) utilizing the latest technology and through dedicated employees (4, 9). Our purpose has been to open stores where we strongly believe we can be competitive while meeting the demands of our customers (3). We continue to be responsible by contributing back to communities, society and charitable events (6, 7, 8).
1.
Customer
2.
Products or services
3.
Markets
4.
Technology
5.
Concern for survival, profitability, growth
6.
Philosophy
7.
Self-concept
8.
Concern for public image
9.
Concern for employees
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Strengths
1.
Sells essential items with relatively inelastic demand
2.
Healthy gross profit margin
3.
Accepts food stamps
4.
Lower than industry average leverage ratio
5.
Being able to raise its dividends
6.
Better than industry average total asset turnover
7.
Its return on assets of 1.84% is higher than the industry average
8.
Its return on equity is 4%, higher than the industry average
9.
Approximately 90% of the company’s products are priced below $10
10.
In the past year, the company’s stock has outperformed the average retail industry
Weakness
1.
Does not do much advertising
2.
Limited market, solely in the U.S. only
3.
In the year 2008, the company’s market share dropped from 1.85% to 1.75%
4.
The company’s EPS is only 72% of the industry average and is not growing as quickly as the industry average
5.
Limited in variety of products being offered
6.
For the year 2008, the company’s overall sales only grew by 2.18% whereas the average industry sales grew by 5.31%
7.
Does not generate enough sales from its web site due to limited technology
8.
Higher than industry average quick ratio, indicating lack of long term re-investment
9.
The company’s long-term debt to equity ratio is only 31.4% of the industry average
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Opportunities
1.
The income for the middle class is diminishing, causing them to be more cautious with their expenditures
2.
The average household income is dropping due to weak economy
3.
The demand for low-priced items is growing
4.
The unemployment rate is increasing
5.
Smaller retailers are closing their stores and some have filed for bankruptcy
Threats
1.
High competition among large discount retailers
2.
Dollar General has higher market share compare to Family Dollar
3.
Per square foot, Dollar General is creating more sales
4.
The industry is sensitive to economic conditions
5.
Change in demographics due to purchasing habits
6.
Increase in tariffs and trade barriers
7.
Lack of quality control in products due to being imported from China and other countries
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4/11/2020
Family Dollar Dollar Tree Dollar General
Critical Success Factors
Store Locations
Merchandise Variety
Advertising
Customer Loyalty
Market Share
Customer Service
Product Quality
Price Competitiveness
Technology
Total
Weigh t
0.08
0.12
0.04
0.05
0.07
0.05
0.15
0.15
0.05
1.00
2
2
1
2
2
2
2
Ratin g
3
2
Weighte d Score
0.24
0.24
0.08
0.10
0.14
0.10
0.30
0.30
0.05
1.55
1
3
1
1
Ratin g
2
1
1
1
2
Weighte d Score
0.16
0.12
0.04
0.05
0.07
0.15
0.15
0.15
0.10
0.99
3
1
3
3
Ratin g
4
3
3
3
3
Weighted
Score
0.32
0.36
0.12
0.15
0.28
0.05
0.45
0.45
0.15
2.33
Copyright 2012, Tony Gauvin, UMFK 18

Key External Factors
Opportunities
1. The income for the middle class is diminishing, causing them to be more cautious with their expenditures
2. The average household income is dropping due to weak economy
3. The demand for low-priced items is growing
4. The unemployment rate is increasing
5. Smaller retailers are closing their stores and some have filed for bankruptcy
Threats
1. High competition among large discount retailers
2. Dollar General has higher market share compare to Family Dollar
3. Per square foot, Dollar General is creating more sales
4. The industry is sensitive to economic conditions
5. Change in demographics due to purchasing habits
6. Increase in tariffs and trade barriers
7. Lack of quality control in products due to being imported from and other countries
TOTAL
Weight
0.1
0.1
0.07
0.09
0.08
0.1
0.09
0.07
0.08
0.05
0.07
0.1
1.00
Rating Weighted Score
2
3
3
2
3
1
1
4
3
3
4
3
0.4
0.3
0.21
0.36
0.24
0.3
0.18
0.14
0.24
0.15
0.07
0.1
2.69
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4/11/2020
Narrow Price
Competitive
Strong Online
Shopping
(ecommerce)
Dollar
Tree
Wal-
Mart
Dollar
General
Family
Dollar
Wide Price
Competitive
Weak Online
Shopping
(ecommerce)
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11 person Board
CEO & CHAIRMAN OF
THE BOARD
PRESIDENT AND COO VICE CHAIR
EVP SUPPLY CHAIN
DC MANGERS
DC MANGERS
EVP STORE
OPERATIONS
REGIONAL
MANAGERS
STORE MANGERS
SVP GLOBAL
SOURCING
SVP SPACE
MANAGEMENT AND
INVENTORY
OPTIMIZATION
SVP REAL ESTATE
AND FACILITIES
SVP CUSTOMER
MARKETING
STORE MANGERS
SVP FOOD SCP HARDLINES
SVP IT
CIO
SVP FINANCE
CFO
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4/11/2020
Growth Rates %
Sales (Qtr vs.. year ago qtr)
Net Income (YTD vs.. YTD)
Net Income (Qtr vs. year ago qtr)
Sales (5-Year Annual Avg.)
Net Income (5-Year Annual Avg.)
Dividends (5-Year Annual Avg.)
Price Ratios
Current P/E Ratio
P/E Ratio 5-Year High
P/E Ratio 5-Year Low
Price/Sales Ratio
Price/Book Value
Price/Cash Flow Ratio
Profit Margins %
Gross Margin
Pre-Tax Margin
Net Profit Margin
5Yr Gross Margin (5-Year Avg.)
5Yr PreTax Margin (5-Year Avg.)
5Yr Net Profit Margin (5-Year Avg.)
Financial Condition
Debt/Equity Ratio
Current Ratio
Quick Ratio
Interest Coverage
Leverage Ratio
Book Value/Share
Family Dollar
2.60
25.00
13.10
6.98
2.46
9.94
Family Dollar
13.8
27.9
9.8
0.54
2.76
8.80
Family Dollar
34.8
6.1
3.9
33.7
5.5
3.5
Family Dollar
0.17
1.5
0.6
72.1
2.0
10.38
Industry
24.3
5.0
3.2
23.7
5.3
3.5
Industry
0.68
1.1
0.4
33.4
2.5
17.92
Industry
-1.50
-1.50
1.70
9.16
7.53
20.58
Industry
16.4
19.6
11.1
0.49
2.84
10.00
S&P 500
36.6
9.6
6.7
37.8
16.6
11.5
S&P 500
1.01
1.4
1.1
28.7
3.6
18.38
S&P 500
-7.40
-3.40
25.20
13.14
12.60
11.84
S&P 500
26.1
15.2
3.0
2.04
3.05
13.20
Copyright 2012, Tony Gauvin, UMFK
Source: www.moneycenteral.msn.com
23

08/09
08/08
09/07
08/06
08/05
08/04
08/03
08/02
09/01
08/00
4/11/2020
08/09
08/08
09/07
08/06
08/05
08/04
08/03
08/02
09/01
08/00
Avg P/E
13.80
13.30
18.80
19.00
21.60
23.10
23.10
25.50
21.90
18.70
Price/ Sales
0.58
0.50
0.64
0.57
0.58
0.87
1.46
1.19
1.41
0.97
Net Profit
Margin (%)
3.9
3.3
3.6
3.1
3.7
4.9
5.1
5.1
5.2
5.5
Book Value/ Share
$10.38
$8.98
$8.19
$8.04
$8.64
$7.99
$7.51
$6.66
$5.57
$4.66
Debt/ Equity
0.17
0.20
0.21
0.21
0.00
0.00
0.00
0.00
0.00
0.00
Return on Equity (%)
20.2
18.6
20.7
16.1
15.2
19.3
18.8
18.4
19.8
21.6
Return on Assets (%)
10.2
8.8
9.3
7.7
9.0
11.6
11.8
12.1
13.5
13.8
Copyright 2012, Tony Gauvin, UMFK Source: www.moneycenteral.msn.com
24
Interest Coverage
35.3
25.0
22.3
24.2
NA
NA
NA
2120.7
538.7
NA

Key Internal Factors Weight
Strengths
1. Sells essential items with relatively inelastic demand
2. Healthy gross profit margin
3. Accepts food stamps
4. Lower than industry average leverage ratio
5. Being able to raise its dividends
6. Better than industry average total asset turnover
7. Its return on assets of 1.84% is higher than the industry average
8.
Its return on equity is 4%, higher than the industry average
9.
Approximately 90% of the company’s products are priced below $10
In the past year, the company’s stock has outperformed the average retail
10.
industry
Weaknesses
1. Does not do much advertising
2. Limited market, solely in the only
3. In the year 2008, the company's market share dropped from 1.85% to 1.75%
The company's EPS is only 72% of the industry average and is not growing
4. as quickly as the industry average
5. Limited in variety of products being offered
For the year 2008, the company's overall sales only grew by 2.18% whereas
6. the average industry sales grew by 5.31%
7. Does not generate enough sales from its web site due to limited technology
8.
Higher than industry average quick ratio, indicating lack of long term reinvestment
9.
The company's long-term debt to equity ratio is only 31.4% of the industry average
0.03
0.07
0.08
0.08
0.05
0.08
0.07
0.08
0.03
0.02
Copyright 2012, Tony Gauvin, UMFK 1.00
0.05
0.05
0.08
0.05
0.03
0.03
0.02
0.03
0.07
Rating Weighted
Score
0.14
0.16
0.16
0.05
0.16
0.14
0.16
0.06
0.02
2.45
0.15
0.15
0.32
0.15
0.09
0.09
0.06
0.09
0.21
0.09
2
2
1
2
2
2
2
2
1
3
3
3
3
3
3
3
3
4
3
25

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5.
6.
7.
2.
3.
4.
Strengths
1.
Sells essential items with relatively inelastic demand
Healthy gross profit margin
Accepts food stamps
Lower than industry average leverage ratio
8.
9.
10.
Being able to raise its dividends
Better than industry average total asset turnover
Its return on assets of 1.84% is higher than the industry average
Its return on equity is 4%, higher than the industry average
Approximately 90% of the company's products are priced below $10
In the past year, the company's stock has outperformed the average retail industry
Weaknesses
1.
2.
3.
Does not do much advertising
Limited market, solely in the only
In the year 2008, the company's market share dropped from 1.85% to 1.75%
4.
5.
6.
The company's EPS is only 72% of the industry average and is not growing as quickly as the industry average
Limited in variety of products being offered
For the year 2008, the company's overall sales
7.
8.
9.
only grew by 2.18% whereas the average industry sales grew by 5.31%
Does not generate enough sales from its web site due to limited technology
Higher than industry average quick ratio, indicating lack of long term re-investment
The company's long-term debt to equity ratio is only 31.4% of the industry average
3.
4.
5.
Opportunities
1.
The income for the middle class is diminishing, causing them to be more cautious with their expenditures
2.
The average household income is dropping due to weak economy
The demand for low-priced items is growing
The unemployment rate is increasing
Smaller retailers are closing their stores and some have filed for bankruptcy
S-O Strategies
1.
Implement some price cuts to improve sales (S2,
O1, S9, O3)
2.
Advertise to improve product variety and offerings
(S1, S2, S3, O4, O5)
W-O Strategies
1.
Increase number of stores in low income areas
(O2, O1, W3, W2)
2.
Expand product offerings such fruits and other perishable products (W3, W5, O3, O4, O5)
3.
4.
5.
6.
7.
Threats
1.
2.
High competition among large discount retailers
Dollar General has higher market share compare to
Family Dollar
Per square foot, Dollar General is creating more sales
The industry is sensitive to economic conditions
Change in demographics due to purchasing habits
Increase in tariffs and trade barriers
Lack of quality control in products due to being imported from and other countries
S-T Strategies
1.
Due to better return on assets ratio, the company can invest in technology, promoting online selling
(S6, T1, T5)
W-T Strategies
1.
Increase advertising by offering discounts, coupons, and other special offerings (W1, W2,
W3, T1, T2, T3, T4)
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Financial Stability (FS)
Return on Investment
Leverage
Liquidity
Working Capital
Cash Flow
Financial Stability (FS) Average
Competitive Stability (CS)
Market Share
Product Quality
Customer Loyalty
Competition’s Capacity Utilization
Technological Know-How
Competitive Stability (CS) Average
3
2
3
2
3
Environmental Stability (ES)
Unemployment
Technological Changes
Price Elasticity of Demand
Competitive Pressure
Barriers to Entry
2.6
Environmental Stability (ES) Average
-4
-3
-2
-3
-4
Industry Stability (IS)
Growth Potential
Financial Stability
Ease of Market Entry
Resource Utilization
Profit Potential
-3.2
Industry Stability (IS) Average
-1
-2
-3
-1
-2
-1.8
5
3
4
2
3
3.4
Y-axis: FS + ES = 2.6 + (-1.8) = 0.8 < 1
X-axis: CS + IS = (-3.2) + (3.4) = 0.2 < 1
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4/11/2020
Conservative
CS
-6 -5 -4 -3 -2 -1
Defensive
-1
-2
-3
-4
-5
-6
ES
1
3
2
1
5
4
6
FS
Aggressive
2 3 4 5
Competitive
6
IS
Copyright 2012, Tony Gauvin, UMFK 29

Quadrant II
Rapid Market Growth
Quadrant I
Weak
Competitive
Position
Strong
Competitive
Position
4/11/2020
Quadrant III
Slow Market Growth
Quadrant IV
Copyright 2012, Tony Gauvin, UMFK
1.
Market Development
2.
Market Penetration
3.
Product Development
4.
Forward Integration
5.
Backward Integration
6.
Horizontal Integration
7.
Related Diversification
30

4/11/2020
High
3.0 to 3.99
IV
The EFE
Total
Weighted
Score
Medium
2.0 to 2.99
Low
1.0 to 1.99
VII
Strong
3.0 to 4.0
I
The IFE Total Weighted Score
Average
2.0 to 2.99
II
Weak
1.0 to 1.99
III
IV
VIII
VI
IX
Copyright 2012, Tony Gauvin, UMFK 31

IE Alternative Strategies
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Concentric
Diversification
Conglomerate
Diversification
Horizontal
Diversification
Joint Venture
Retrenchment
Divestiture
Liquidation
4/11/2020 x x
SPACE x x x x x x x x x
GRAND
X
X
X
X
X
X
X
Copyright 2012, Tony Gauvin, UMFK
COUNT
2
2
2
3
2
3
2
1
1
32

Key Factors
Opportunities expenditures
Threats
QSPM
TOTAL
Strengths
7. Lack of quality control in products due to being imported from and other countries
Weaknesses
SUBTOTAL industry average sales grew by 5.31%
SUM TOTAL ATTRACTIVENESS SCORE
4/11/2020 Copyright 2012, Tony Gauvin, UMFK
0.07
0.08
0.08
0.05
0.08
0.07
0.08
0.03
0.02
1.00
0.05
0.05
0.08
0.05
0.03
0.03
0.02
0.03
0.07
0.03
Weight
0.1
0.1
0.07
0.09
0.08
0.1
0.09
0.07
0.08
0.05
0.07
0.1
1.00
0.07
0.24
0.32
---
0.16
0.14
0.08
---
0.02
2.06
4.02
0.05
0.1
0.32
0.1
---
0.09
---
---
0.28
0.09
1
3
4
---
2
2
1
---
1
1
2
4
2
---
3
---
---
4
3
1
---
2
3
3
---
---
Increase number of stores in low income areas
AS TAS
Increase advertising by offering discounts, coupons, and other special offerings
0 TAS
3
4
3
2
3
0.3
0.4
0.21
0.18
0.24
2
3
2
3
2
0.2
0.3
0.14
0.27
0.16
0.10
---
0.14
0.24
0.15
---
---
1.96
2
---
1
1
2
---
---
0.20
---
0.07
0.08
0.1
---
---
1.52
2
4
3
1
---
1
---
---
3
2
3
2
2
---
1
3
2
---
2
0.16
---
0.04
1.91
3.43
33
0.21
0.16
0.16
---
0.08
0.21
0.1
0.2
0.24
0.05
---
0.03
---
---
0.21
0.06

4/11/2020 Copyright 2012, Tony Gauvin, UMFK 34

1. Build additional stores in the U.S. Currently, many stores are closing and the price of real estate has dropped, in some areas, as high as 60%. Opening stores in lower priced areas or taking over a terminated lease can save the company many start-up fees.
1. Build/acquire 200 stores/year for next 3 years
2. Grow to 7000+ stores by 8/2012
2. Build stores in rural / high demand areas where unemployment is high and many are under state funding for food stamps.
1. Analysis: Current sales per sq foot ($6,984 million in sales / 6,600 stores
/ 7,500 average sq ft per store) = $141
2. Additional 200 stores x 7,500 average sq ft per store x $141 sales per sq ft = + $211,500,000 increase in sales each year for the next three years.
4/11/2020 Copyright 2012, Tony Gauvin, UMFK 35

$ Amount Needed: $20 million
Stock Price: $28.20
Tax Rate: 35.4%
Interest Rate: 5.00%
# Shares Outstanding: 138,797,782
4/11/2020
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
Common Stock Financing
Recession Boom
$375,000,000
0
375,000,000
132,750,000
242,250,000
139,507,002
1.74
$500,000,0
00
0
500,000,00
0
177,000,00
0
323,000,00
0
139,507,00
2
2.32
$750,000,000
0
750,000,000
265,500,000
484,500,000
139,507,002
3.47
Recession
$375,000,000
1,000,000
374,000,000
132,396,000
241,604,000
138,797,782
1.74
Debt Financing
$500,000,000
1,000,000
499,000,000
176,646,000
322,354,000
138,797,782
2.32
Boom
$750,000,000
1,000,000
749,000,000
265,146,000
483,854,000
138,797,782
3.49
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
70 Percent
Stock - 30
Percent Debt
Recession
$375,000,000
800,000
374,200,000
132,466,800
241,733,200
139,294,236
1.74
Boom
70 Percent
Debt - 30
Percent
Stock
Recession Boom
$500,000,0
00
800,000
499,200,00
0
176,716,80
0
322,483,20
0
139,294,23
6
2.32
$750,000,000 $375,000,000 $500,000,000 $750,000,000
800,000 200,000 200,000 200,000
749,200,000
265,216,800
483,983,200
139,294,236
3.47
374,800,000
132,679,200
242,120,800
139,010,548
1.74
499,800,000
176,929,200
322,870,800
139,010,548
2.32
749,800,000
265,429,200
484,370,800
139,010,548
3.48
Copyright 2012, Tony Gauvin, UMFK 36

–
• 1 million interest in first year
–
• $100 K in equipment per store
• Leases and inventory @ existing rates and expensed from revenue
• Depreciation over 5 year life $4m per annum
–
4/11/2020 Copyright 2012, Tony Gauvin, UMFK 37

revenues total revenues cost of goods sold gross profit selling general & admin expenses, total other operating expenses, total operating income interest expense interest and investment income net interest expense ebt, excluding unusual items ebt, including unusual items income tax expense earnings from continuing operations
Net Income
Dividends
Shares Outstanding (basic)
Retained earnings
EPS
4/11/2020
2009
7,400.60
7,400.60
4,822.40
2,578.20
2,120.90
2,120.90
457.3
-12.9
6.6
-6.3
450.9
450.9
159.7
291.3
291.3
0.53
139.894
2010 Projected
7,612.10
7,612.10
4,960.22
2,651.88
2,181.51
2,181.51
470.37
-13.90
6.60
-7.30
463.07
463.07
164.01
299.06
299.06
0.57
139.894
219.32
2.08
2.14
Copyright 2012, Tony Gauvin, UMFK
Comments
Add $211.5 millions additional revenue
% of sales method
% of sales method additional $ 1 million interest same
0.354181 tax rate add 0.04 per annum
In millions except for
EPS
38

Assets cash and equivalents short-term investments total cash and short term investments other receivables total receivables inventory prepaid expenses deferred tax assets, current total current assets gross property plant and equipment accumulated depreciation net property plant and equipment long-term investments other long-term assets total assets
438.9
5.8
444.7
12.6
12.6
993.8
59.2
82.7
1,593.00
2,190.10
-1,133.70
1,056.40
163.50
64.8
2,877.80
663.76
5.8
669.56
12.6
12.6
1,023.92
60.99
85.21
1,852.28
2,210.10
-1,134.70
1,075.40
163.50
64.80
3,155.98
adjust
Add 200/6600 more
Add 200/6600 more add 20 million add 4 million same same
0.00
liabilities & equity accounts payable accrued expenses current portion of long-term debt/capital lease current income taxes payable other current liabilities, total total current liabilities long-term debt deferred tax liability non-current other non-current liabilities total liabilities common stock additional paid in capital retained earnings treasury stock comprehensive income and other total common equity total equity total liabilities and equity
4/11/2020
528.1
285.5
544.1030303
294.1515152
--
1.7
91.1
906.3
250
44.8
236.6
1,437.70
14.5
210.3
1,387.90
-163.8
-9
1,440.10
1,440.10
2,877.80
Copyright 2012, Tony Gauvin, UMFK
1.8
91.1
931.1545455
270
50
236.6
1,487.75
14.5
210.3
1,607.22
-163.8
-9
1,668.22
1,668.22
3,155.97
add 200/6600 add 200/6600 fudge same add 20 million fudge same same same add retained earnings same same
39

4/11/2020 Copyright 2012, Tony Gauvin, UMFK 40

Area of Objectives
Customers
1 Satisfaction
2 Brand Identity
Employees
1 Quality and service training
2 Employee Satisfaction
Operations/Processes
1 Productivity
2 On tine delivery
Business Ethics/Natural
Environment
1 Waste reduction
2 Ethics Training
Financial
1 Sales and expenses reports
2 Ratio analysis
4/11/2020
Measure or Target
Customer Survey results
Industry Reports
On site and webinars
Survey
Sales/man-hour increase 2%
Percentage unfilled shelf space volume of recyclable materials per store
# of ethics training sessions
2% sales increase
2% expense reduction better than Industry Avg,
Copyright 2012, Tony Gauvin, UMFK
Time
Expectation
Primary Responsibility
Yearly
Yearly
Yearly
Yearly
Quarterly
Quarterly
Marketing Department
Marketing Department
COO
Human resources
COO
COO
Quarterly
Yearly
Quarterly
Yearly
COO
Human resources
CFO
CFO
41

4/11/2020
2009 2010 projected
Liquidity Ratios
Current Ratio
Quick Ratio
Leverage Ratios
Debt-to-Total Assets Ratio
Debt-to-equity Ratio
Long-term debt-to-equity Ratio
Times-Interest-earned Ratio
Activity Ratios
Inventory Turns
Fixed Assets Turnover
Total Assets Turnover
Profitability Ratios
Gross Profit margins
Operating Profit Margin
Net Profit Margin
Return on Total Assets
Return on Stockholders equity
Earning per share
Price-earnings Ratio
1.76
0.66
0.50
1.00
0.17
35.45
7.45
7.01
2.57
1.99
0.89
0.47
0.89
0.16
33.84
7.43
7.08
2.41
0.35
0.06
0.04
0.10
0.20
2.08
14.54
Copyright 2012, Tony Gauvin, UMFK
0.35
0.06
0.04
0.09
0.18
2.14
20.02
2011 targets
2
1
0.5
0.85
0.15
36
7.5
7.1
2.6
0.38
0.07
0.05
0.11
0.25
2.25
15-20
42

4/11/2020 Copyright 2012, Tony Gauvin, UMFK 43

4/11/2020 Copyright 2012, Tony Gauvin, UMFK 44

4/11/2020 Copyright 2012, Tony Gauvin, UMFK 45

4/11/2020 Copyright 2012, Tony Gauvin, UMFK 46

• "Family Dollar Stores, Inc." International Directory of Company Histories, Vol.62. St. James
Press, 2004
• Top Dollar Stores, 2009." 'Analyst & Investor Day.' [online] from http://www.bicworld.com/img/pdf/ADAY_FINAL_CP_DISTRIBUTION.pdf
[Published March
31, 2010], from MVI-Insights and USA Overview and Growth Forecast. Market Share
Reporter 2011.
• Datamonitor “Family Dollar Stores, Company profile 2009”, www.datamonitor.com , 13 Apr
2010
• “Family Dollar 2010 Analyst and Investor Update”, www.familydollar.com
, Investor Relations
• “Morgan Stanley 2011 Global Consumer Conference Presentation”, www.familydollar.com
,
Investor Relations
• “Family Dollar Annual Report, 2009””, www.familydollar.com
, Investor Relations
• Family Dollar Stores, Inc. – 2009, Joseph W. Lenard, Miami University, published in Strategic
Management, concepts and Cases 13 th edition, Fred David
• Family Dollar Stores, Inc. – 2009, case notes, Dr. Mernoush Banton
• Yahoo Finance, http://finance.yahoo.com/echarts?s=FDO+Interactive#symbol=fdo;range=my;compare=^gspc
;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined ;
4/11/2020 Copyright 2012, Tony Gauvin, UMFK 47