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PetSmart, Inc

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Attached is the 2010 annual report for Petsmart, Inc.

What can you say about the company's current capital structure mix in terms of % of debt, % of commons stock and % of preferred stock. What's the firm's future financing limitations ? What kind of strategy do you suggest for the firm to finance its future project? Any capital rationing limitations to consider? What are the company financial management practices, and risk levels? Describe the impact of varying the levels of working capital on asset levels.

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Attached is the 2010 annual report for PetSmart, Inc.

What can you say about the company's current capital structure mix in terms of % of debt, % of commons stock and % of preferred stock? What are the firm's future financing limitations?

The current capital structure is such that long term debt to equity is 45.03%. There is currently no issued preferred stock. The financing by common stock consists of four parts namely, Common stock $16, Additional paid-up capital 1,222,340, Retained earnings, 1,277,803, and accumulated other comprehensive income 5,380 (all figures in thousands of dollars). From this treasury stock of $ 1,334,897 is deducted. The applicable shareholder's equity is $ 1,170,642.

There are two types of limitations to the future financing of PetSmart. First, there is the limitation by way of maximum authorized Preferred Stock and Common Stock. For instance, 10,000 preferred shares are authorized and 625,000 common stock are authorized. This sets the outside limit up to which equity can be used by PetSmart for financing its future operations. The other limitation is that ...

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