Comparative Financial Performance Analysis: Petco vs. Chewy (2019-2023)

Jeanine Castro

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.ACCOUNTING

Faculty Research Mentor: Yu, Huaibing  

Abstract:

The pet retail industry has been performing well over the past few years, especially during and after the COVID-19 pandemic. People spent more on pet products and services. This study aims to analyze which of the two companies, Petco or PetSmart, is more profitable and financially stable by comparing their financial performance over a five-year period from 2019 to 2023.The study used various financial information from both companies. The information used includes revenue growth, net profit margin, return on assets (ROA), return on equity (ROE), debt to equity ratio, current ratio, and free cash flow. These measures are used to evaluate which company is better at managing its business.Based on the study, it can be seen that both companies are profitable, especially during the pandemic. However, the study also reveals that they used different strategies to manage debt. Overall, it can be noted that the study provides an overview of how to analyze a company’s performance using various financial ratios. Moreover, it gives an idea of which company seems to be more stable in the competitive market.Keywords: Financial Analysis, Profitability Ratios, Capital Structure, Retail Finance, Pet Industry