Wrong Answers

[zmtomorrow]

Question: Was there any change in the number of Best Buy stores between Q2 of FY2024 and FY2023?

Provided answer: Yes, there is decline in number stores by 1.32% from 982 stores in Q2 FY 2023 to 969 by the end of Q2 FY2024.

Evidence text: Fiscal 2024 Fiscal 2023
Total Stores at
Beginning of
Second Quarter
Stores
Opened
Stores
Closed
Total Stores at
End of Second
Quarter
Total Stores at
Beginning of
Second Quarter
Stores
Opened
Stores
Closed
Total Stores at
End of Second
Quarter
Best Buy 908 - (1) 907 931 1 (2) 930
Outlet Centers 20 1 (1) 20 16 2 - 18
Pacific Sales 20 - - 20 21 - - 21
Yardbird 18 4 - 22 9 4 - 13
Total 966 5 (2) 969 977 7 (2) 982

Mistake: The query asks about the best buy stores, but the provided answer considered total stores.

Right Answer: There is a decline from 930 to 907.

[zmtomorrow]

Question: Which Best Buy product category performed the best (by top line) in the domestic (USA) Market during Q2 of FY2024?

evidence_text: "Computing and Mobile Phones: The 6.4% comparable sales decline was driven primarily by computing, mobile phones and tablets.x000D\n\uf0b7 Consumer Electronics: The 5.7% comparable sales decline was driven primarily by home theater, partially offset by comparable sales growth in_x000D_\nheadphones and portable speakers.x000D\n\uf0b7 Appliances: The 16.1% comparable sales decline was driven primarily by large appliances.x000D\n\uf0b7 Entertainment: The 9.0% comparable sales growth was driven primarily by gaming, partially offset by comparable sales declines in virtual reality and_x000D_\ndrones.x000D\n\uf0b7 Services: The 7.6% comparable sales growth was driven primarily by the cumulative growth in our paid membership base",

Mistake: The text only consider growth. However, if one considers the revenue proportion:

The 'Computing and Mobile Phones' category had the highest revenue mix at 41%, despite a 6.4% decline in comparable sales. This indicates that it generated the most revenue in absolute terms, even though its sales declined compared to the previous year.

[zmtomorrow]

Question: Roughly how many times has AES Corporation sold its inventory in FY2022? Calculate inventory turnover ratio for the FY2022; if conventional inventory management is not meaningful for the company then state that and explain why.

Provided answer: AES has converted inventory 9.5 times in FY 2022.

Correct answer: 12.14

Error reason: The calculation of the provided answer uses the ending inventory for 2022 instead of the average inventory over the year.

[zmtomorrow]

Question: Does AMEX have an improving operating margin profile as of 2022? If operating margin is not a useful metric for a company like this, then state that and explain why.

Provided answer: Performance is not measured through operating margin

Error reason: Didn't answer the question.

[zmtomorrow]

Question: What drove gross margin change as of the FY2022 for American Express? If gross margin is not a useful metric for a company like this, then please state that and explain why.

Provided answer: Performance is not measured through gross margin

Error reason: Didn't answer the question.

[zmtomorrow]

Question: "How much (in USD billions) did American Water Works pay out in cash dividends for FY2020? Compute or extract the answer by primarily using the details outlined in the statement of cash flows.",
Provided answer: "$0.40",

Right answer: 389 millions, which is around 0.39 billion.

[zmtomorrow]

Question: Does American Water Works have positive working capital based on FY2022 data? If working capital is not a useful or relevant metric for this company, then please state that and explain why.

Provided answer: Yes. American Water Works had positive working capital of $ 124Mn by FY 2022.

Right answer: It has negative working capital -$1,561 million.

Error reason: Working capital = current assets – current liabilities.

[zmtomorrow]

Question: Was there any change in the number of Best Buy stores between Q2 of FY2024 and FY2023?

Provided answer: Yes, there is decline in number stores by 1.32% from 982 stores in Q2 FY 2023 to 969 by the end of Q2 FY2024.

Right answer: There was a decrease of 23 Best Buy stores between Q2 of FY2024 and Q2 of FY2023.

Error reason: the provided answer only consider the domestic stores.

[zmtomorrow]

Question: Does Corning have positive working capital based on FY2022 data? If working capital is not a useful or relevant metric for this company, then please state that and explain why.

Provided answer: Yes. Corning had a positive working capital amount of $831 million by FY 2022 close. This answer considers only operating current assets and current liabilities that were clearly shown in the balance sheet.

Right answer:
Current Assets: $7,453 million
Current Liabilities: $5,175 million
Working Capital: $7,453 million - $5,175 million = $2,278 million

[zmtomorrow]

        "question": "How much does Pfizer expect to pay to spin off Upjohn in the future in USD million?",
        "answer": "77.78",
        "evidence_text": "We expect to incur costs of approximately $700 million in connection with separating Upjohn, of which approximately 90% has been incurred since inception and through the second quarter of 2023. These charges include costs and expenses related to separation of legal entities and transaction costs.",

Don't know where 77.78 comes from.

[zmtomorrow]

"question": "Did Ulta Beauty's wages expense as a percent of net sales increase or decrease in FY2023?",
"answer": "Wages expense as a percent of net sales increased in FY2023. The answer here assumes FY2023 refers to the 12 months ended on January 28, 2023 (although the company refers to this period as its fiscal 2022.",
"evidence_text": "For the Full Year of Fiscal 2022_x000D_\nNet sales increased 18.3% to $10.2 billion compared to $8.6 billion in fiscal 2021,x000D\nprimarily due to the favorable impact from the continued resilience of the beauty_x000D_\ncategory, retail price increases, the impact of new brands and product innovation,x000D\nincreased social occasions, and fewer COVID-19 limitations compared to fiscal 2021.x000D\nComparable sales increased 15.6% compared to an increase of 37.9% in fiscal 2021,x000D\ndriven by a 10.8% increase in transactions and a 4.3% increase in average ticket.x000D\nGross profit increased 20.1% to $4.0 billion compared to $3.4 billion in fiscal 2021. As_x000D_\na percentage of net sales, gross profit increased to 39.6% compared to 39.0% in fiscal_x000D_\n2021, primarily due to leverage of fixed costs, strong growth in other revenue, and_x000D_\nfavorable channel mix shifts, partially offset by higher inventory shrink and lower_x000D_\nmerchandise margin.x000D\nSG&A expenses increased 16.2% to $2.4 billion compared to $2.1 billion in fiscal_x000D_\n2021. As a percentage of net sales, SG&A expenses decreased to 23.5% compared to_x000D_\n23.9% in fiscal 2021, primarily due to lower marketing expenses and leverage of_x000D_\nincentive compensation due to higher sales, partially offset by deleverage of corporate_x000D_\noverhead due to strategic investments and deleverage of store payroll and benefits_x000D_\ndue to wage investments.",
"Right answer": The SG&A expenses as a percentage of net sales decreased from 23.9% in FY2022 to 23.5% in FY2023, which can be found in 2023 10-K. The given evidence provided does not directly state the specific change in wages expense as a percentage of net sales for FY2023. However, it does mention that SG&A expenses, which include wages, decreased as a percentage of net sales from 23.9% in fiscal 2021 to 23.5% in fiscal 2022 (FY2023). This implies that overall SG&A expenses, including wages, became more efficient relative to sales.

[zmtomorrow]

"question": "Does Paypal have positive working capital based on FY2022 data? If working capital is not a useful or relevant metric for this company, then please state that and explain why.",
"answer": "Yes. Paypal has a positive working capital of $ 1.6Bn as of FY2022 end.",
"Right answer": 12,416
"Reason": working capital should exclude current liabilities.