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In: Business and Management

Submitted By jjjuice22
Words 2502
Pages 11
Case Analysis


Prepared by: Juice22

Prepared for: Prof Class: Accounitng


Title Page Number

Executive Summery 3

Company Overview 4

Analysis 5

Success Factors 7

Competition 7

Conclusion 8

Recommendation 9

Exhibits 10

Ratio Analysis 11


In April 2006, Anna Simpson is considering revising her personal investment portfolio. In doing so she has become aware of RONA Inc. She would like to gain a better understanding of the company and its financial position before she makes her decision.

RONA Inc. is one of Canada's largest retailers operating with more than 580 stores across Canada, with its largest concentration in Quebec and Ontario. The chain has grown quickly in the early part of the new millennium through a series of building new stores, acquisitions and recruitment.

Analysis will show that RONA is well positioned to meet its future goals and maintain its strong presence within their market segment. RONA’s strong profit before taxes to sales ratio indicates their strength to effectively secure customers. RONA’s ratio is double the industry average and continuously growing indicating strong sales growth and strong management. Furthermore, RONA is proving to be efficiently run by management. Proof is in the age of accounts receivables. Presently RONA has 15.26 days for recovering outstanding costs, which is double of the industry average of 36 days.

RONA’s growth strategy consists of four key areas in which the company must focus on to maintain their current level of growth. Management and the employees believe that focusing on organic growth,…...

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