It has been observed that Minnesota has the major amount of region and profit distribution amont others, alont with that North Carolina has the second largest profit distribution in the country.

It has been clearly observed that Washington, California and Virginia are major states with 3 enterprises as per defined categories, but there are chances that It can also South Carolina, Indiana, New York, and Pennslyvania.

“It has been observed that North Carolina has the highest median revenue distribution with $71,309 million dollars alongside Georgia stands with $63,469 million dollars and at third box Minnesota stands with $59,117 million dollars. That clearly describes typical firm performance by region and Profit distribution. 
Hence, we can say that these states have the potential even though Enterprise distribution is high in Washington and California.”

After analyzing “Concentration and Competition Intensity - Total Revenue” it is crystal clear that retail industry has rapidly captured by “Amazon” and major chunk of revenue has been taken by it.

Although Amazon is not old in comparison to other retailers which mostly among them established in early or mid-19th century. But constant change in customer satisfaction and with high service level Amzon has taken the major chunk of the market.”

China is catching up with US (SP500) on the total revenue and also on the profits as well.

China is constantly up with US (SP500) companies, but Median net and Media Operating Margins are dropping down.

To study the efficiency of the retail industry of US and China, we Plot Median inventory days, cash conversion cycle, asset turnover. and return on assets over time. Most notably we found that US has much higher asset turnover, and return on asset than China. Specifically, the US numbers almost doubled than China.
Indicating that US companies have much better utilization of their assets. 

Finally, we studied the trend of financial health for the US and Chinese retail companies. The pictures show that a Chinese firms are doing increasingly better than their US counterparts on the current ratio and the liability asset ratio. In fact, the current ratio of the US companies are falling quickly below one from 2014 to 2018, indicating a challenge to pay off their short-term debts. Meanwhile, their liability asset ratio rose to nearly 70 percent while their Chinese counterparts were slightly above 40 percent. However, from the cash perspective, the US companies earned much more cash from operating activities and have much more total cash and cash equivalents than their Chinese counterparts.

I first conducted an Industry Comparison, on profit among the transportation, capital goods, automobile and retailing industries. We find that in comparison, transportation companies are big in revenue with good operating and net margins. 

We also compared these industries in growth and found that capital goods, transportation and retailing had a healthy growth rate on medium revenue and operating income. However, automobile companies has little growth in 2018 on the revenue and the big decline on the operating income, implying that whatever you do, do not enter automobile and parts industry for its poor growth on industry totals and medians.

Finally, we'll compare these industries on operational efficiency and found that transportation has the lowest SGA costs as a percentage of the revenue and highest return assets. Transportation also has the second highest labor productivity, but retailing has the least because it is labor-intensive. Understandably, retailing has the smallest inventory return-over and transportation has the highest. Comparatively, transportation has a smaller payable days over receivable days ratio than retailing, indicating a much weaker market bargaining power than retailing. In fact, transportation's payable days is about the same as its receivable days. Well, retailing's payable days is six times its receivable days.

As we can see Amazon is the largest company by far, Walmart is not even in the regression line, it mean it is performing below the average. In comparison HD and Target are much lower than Amazon yet they are in the competition with Amazon. As a comparison we show the Chinese Retailers companies on the same graph, which is green. As we can see, the Chinese companies are much smaller in size with the same cost of spending, the revenue is lower than those US companies. 

When all plot in the operating income versus cost for the same companies to better see the difference in profitability. HD, had a much higher operating income then Amazon,  Amazon, with less cost, although target, and BBY are below the regression line,  Amazon is spending much than HD but operating Income is still less than HD or below the regression line, indicating that it is quite profitable comparing to other Retailers companies in the US. 

To show you how powerful the analysis may be, we plot the Chinese Retail companies on the same graph, which is in green.  And you can see that their profits are way below their American counterparts, which are in blue, even with the same cost.  In addition, the Chinese companies have a scaling problem, that is, as they  ramp up their cost, their profits increased at a slower rate than  the American companies, as shown by the smaller slope of the regression line.

Clearly, Amazon has the largest assets but much less operating income than HD.  Netflix and Target are struggling but Target has same total assets as per HD but its Operating profit is much lesser than HD, but with much less assets HD is enjoying much higher Operating Profits. Note that despite the excellent performance of Amazon, it is just below the regression line, which is the industry average. Target and Netflix are below the regression line.

Comparing the US and Chinese Retail companies in the same graph of operating income versus total assets, you can clearly see that overall the Chinese Retail companies are much less effective in utilizing their assets for making profits than their American counterparts.

Specifically, with the same assets the Chinese companies are making less profits, and as they ramped up their assets, their profits were increasing at a slower rate than the American companies.

This graph shows amazing insights. First of all, Amazon liability asset ratio is close to one, which means that the company's liability is already greater than its assets. HD is performing much better with high liabilities and high return on assets.
Finally, the Tiffany, Tesco, Ross store are doing great job with less liabilities asset ratio and more return on assets in comparison to Amazon.

We can see that Amazon ranks number 1 and Home Depot ranks number 2 in size. By operating margin, Walmart has no rank within the same group of companies. By return on assets. 
Thus Home Depot, Target, Lowes, Best Buy are doing good.

Just to put Walmart into perspective, we can see that Walmart is one of the two worst-performing companies with the return on assets less than five percent. A majority of the companies in this industry made a return on assets more than five percent, and quite some had a return on assets above 10 or 15 percent. Indeed, although Walmart has a lot of potential for improvements.

We can see that Amazon, in Blue, has the revenue and gross profit comparable to the competitors such as Lowe's and Netflix also net income and profit before tax larger than all others except the smallest competitors.. 

We can see that Netflix, in yellow, is the worst in almost all dimensions and Amazon, in blue, is the best.

By putting data in a graph we can see that Amazon is enjoying high return on Equity than Return on Invested Capital and Return on Assets, whereas, its competitors like Home Depot is enjoying Highest Return on Assets and Return on Invested Capital.

We can see that Amazon is doing best in almost every Measurement in comparison to its competitors, Walmart is not in the list or even competition.

We can see that Operating Margin of Amazon is  not doing good and very low. but it is doing Normal in every class of Profitability. Amazon is not doing good with "Current Ratio" but over all Financial Health is Normal. Growth is very high in the industry, yet Operational Efficiency is not doing good.

We can see a gradual increase in total revenue of Amazon from 2015 to 2018, on the other hands, a sudden increase in Operating Income has been observed from 2017 to 2018. Wal-Mart is no where in the competition.

We can see that Gross Margin of Amazon and its competitors is almost same but by 2018 it hit 0.4 beating Macy's. Amazon is not doing good at Operating Margins in comparison to its competitors specially Home Depot which is on 0.15 highest in the category. on the other hands, Net Margins are also low and Returns on Assets are not doing good.

We can see that Amazon's Current Ratio is almost 1 or less than 1 which indicates that they face problem in short-term debts, on the otherhand, Liabilities Asset Ratio is high but stable, Amazon's Liability Asset Ratio is declining which is a good sign, but Lowe's LAR is constantly increasing which is a danger zone. Amazon which is Yellow, is going down which is also a good indicator.

We can see that Inventory Days are very low for Amazon which is a good sign, also Cash Conversion Cycle is also the lowest in the industry which indicates Amazon's high efficiency, on the other hands increasing gradually by 2018, but Amazon has a poor bargaining power over its suppliers and customers relatives to its major competitors.

We did a quite exhaustive search using the tool of value driver analysis, and found that the liability asset ratio, which is the x variable, may affect the operating margin, which is the y variable in the US retail industry. As shown by the picture, a higher liability asset ratio may lead to a lower operating margin for the years from 2015 to 2018. One explanation is that, a higher liability asset ratio may incur a higher other cost in the income statement, which can reduce the operating margin.

We also found that the liability asset ratio may affect the return on assets. As shown by this this picture, a higher liability asset ratio may drive down the return on assets for the US Retail industry.

We first see that, Amazons' cost of goods sold, including inventory, warehousing, and transportation, as a percentage of its revenue, is comparable to the industry average, which means that its control on the cost of goods sold is fine. However, Amazon has a significantly higher other costs, almost 22 percent of the revenue, than the industry average, which is only 6.11 percent. Best Buy performs fine and very close to the industry average. Dollar General had a clear advantage on cost of goods sold over other companies. In fact, it's cost of goods sold versus revenue is about five percent lower than the industry average, which translates to a higher than average net income.

Now let's break down the assets of the US retail industry to see their liabilities and equity. The industry average is on the left, and we can see that Amazon has almost zero equity, and a significant percentage of non-current liabilities, which is much higher than the industry average. This implies its poor financial health. Best Buy is close to the industry average, and Dollar General has a much higher percentage of equity than the industry average, indicating its outstanding financial health in comparison to its competitors.

We can see that Amazon is sufficient Cash and equivalent to Cash but shocking fact is that Dollar General is running out of cash which is a danger sign. Amazon has no long term investment which is a danger sign as well.