Aaron's, Inc.
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Aaron's, Inc. Financial Snapshot
Operating Performance
Fast Facts
309 East Paces Ferry Rd., N.E., ATLANTA, The company reported revenue of US$2,024.05
Headquarters Address
30305-2377,United States of America million during the fiscal year 2011 (2011). The
company's revenue grew at a CAGR of 9.75% during
Telephone + 1 404 2310011
2007–2011, with an annual growth of 7.84% over
2010. In 2011, the company recorded an operating
Fax + 1 404 2406583 margin of 9.06%, as against 10.17% in 2010.
Website www.aaronsinc.com
Revenue and Margins
Ticker Symbol, Stock Exchange AAN, New York Stock Exchange
Number of Employees 10,400
Fiscal Year End December
Revenue (in US$ million) 2,024.05
SWOT Analysis
Strengths Weaknesses Return on Equity
Extensive marketing activities Geographical concentration The company recorded a return on equity (ROE) of
11.65% for 2011, as compared to its peers, Best Buy
Co, Inc. (Ticker: BBY), Rent-A-Center, Inc. (Ticker:
Steady revenue growth RCII) and Sears Holdings Corporation (Ticker:
SHLD), which recorded ROEs of 19.34%, 12.11% and
Vertically integrated business model 1.52% respectively. The company reported an
operating margin of 9.06% in 2011.
Opportunities Threats
Return on Equity
Expansion of store network Channel switching
Growth in rent-to-own industry Rise in labor wages in the US
Slowdown in the US construction and
Growth of web-based stores
housing industry
Strategic acquisitions
Financial Leverage
The company reported a debt to equity ratio of 0.16 in
2011, as compared to its peers, Best Buy Co, Inc.,
Rent-A-Center, Inc. and Sears Holdings Corporation,
which recorded debt to equity ratios of 0.26, 0.54 and
0.38 respectively.Furthermore, in 2011, the company
recorded a debt to capital ratio of 0.09, as compared
to its peers, Best Buy Co, Inc., Rent-A-Center, Inc.
and Sears Holdings Corporation, which recorded debt
to capital ratios of 0.19, 0.26 and 0.20 respectively.
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Aaron's, Inc. - SWOT Profile Page 1
Aaron's, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators ...................................................................................................................9
2.2.1 Revenue and Operating Profit ...........................................................................................................................9
2.2.2 Asset, Lia