Course Project Final
Dollar Tree and Dollar General
Horizontal and Vertical Analysis

Cynthia Bates
Devry University
Finance 382
Professor Bankston-Bradshaw
April 19, 2013

Course Project Final
Dollar Tree and Dollar General
Vertical and Horizontal Analysis

I. General information about companies II. Current events III. Relevant ratios IV. Spreadsheets V. Significant assets and liability items, comments on revenue and profitability VI. Relevant ratios and vertical analysis discussion VII. Brief analysis of horizontal analysis VIII. Company objectives IX. Three most important ratios X. Industry comparison XI. References

I. General information about the companies
For my course …show more content…

This seems to be an indication of how much each company will have in gross profit. The Dollar Tree has cost of goods sold at 64.13%. This seems like a fair figure to me. This gives them a gross profit of 35.87%. That is a good amount of profit after the cost of goods sold. This ratio is especially important to the Dollar Tree because the amount of goods sold is the heart of the business.
Dollar General is very close to their competition in cost of goods sold. For 2012 they recorded 68.27%. This is just a little under the Dollar Tree. The amount of gross profit that this company has is 31.73%. The slight difference in numbers between these two companies can come from the amount of time it takes to move inventory. The days in inventory for Dollar General are substantially larger than that of Dollar Tree. VII. Brief analysis of horizontal analysis
I have reviewed my findings on vertical analysis in each of the workbooks and they seem to be correct. While both of these companies are very similar in comparison, I believe that Dollar Tree is in a better position. These companies are very close in the amount of gross profit that is received, but Dollar General has long term liabilities that are over half of the total amount of all their liabilities. The amount of long term liabilities that Dollar Tree has is small in