Definition Industry Rite Aid Rite Aid Average FY2009 FY 2008 Common-Size Debt Total Liabilities / Total 43.83% 82.79% 87.41% Assets Common-Size Interest Expense / Net 0.35% 2.01% 1.82% Interest Expense Sales Debt-to-Assets Long-Term Debt / 14.41% 79.14% 72.20% Total Assets Long-Term Debt to Total Long-Term Debt / 0.26 -3.81 -5.01 Equity Total Shareholders Equity Proportion of Long-Term Debt due in 1 6.11% 0.81% 0.68% debt due in 1 year / Total Long-Term year Debt (Pretax income + Interest 33.44 x -6.95 -4.41 "Interest Expense) / Interest Coverage" Expense 2. The thing that stands out about Ride Aid is the sheer amount of liability and debt that the company holds. Rite Aid’s common-size debt ratio is roughly double that of their competitors and their debt-to-assets ratio is almost five-times that of their competitors’. Also, Rite Aid is not generating any profit.
Definition Industry Average Rite Aid FY2009 Rite Aid FY 2008 Common-Size Debt Total Liabilities / Total Assets 43.83% 82.79% 87.41% Common-Size Interest Expense Interest Expense / Net Sales 0.35% 2.01% 1.82% Debt-to-Assets Long-Term Debt / Total Assets 14.41% 79.14% 72.20% Long-Term Debt to Equity Total Long-Term Debt / Total Shareholders Equity 0.26 -3.81 -5.01 Proportion of debt due in 1 year Long-Term Debt due in 1 year / Total Long-Term Debt 6.11% 0.81% 0.68% "Interest Coverage" (Pretax income + Interest Expense) / Interest Expense 33.44 x -6.95 -4.41 2. The thing that stands out about Ride Aid is the sheer amount of liability and debt that the company holds. Rite Aid’s common-size debt ratio is roughly double that of their competitors and their debt-to-assets ratio is almost five-times that of their competitors’. Also, Rite Aid is not generating any profit.
Senior%20Thesis%20WarrenBall%205.12.17FINAL.docx