A Comprehensive Financial Analysis Essay -- essays research papers

A Comprehensive Financial AnalysisOfTOYS R US dodge OF CONTENTS community Overview ....................................................... 4Key Facts........................................................................ 4Business Description.................................................... 5History ............................................................................ 6Key Employees .............................................................. 7Major Products And go..................................... 12Products And Services Analysis................................ 13SWOT Analysis ............................................................ 14Top Competitors .......................................................... 18Company View ............................................................. 19Locations and Subsidiaries........................................ 24HISTORYToys "R" Us was formal in 1948 as a sister furniture store in Washington DC, byCharles Lazar us at the young age of 25 . Mr. Lazarus began a business totally dedicated to kids and their demand just in cadence for the post-war baby boom era. The store started off by selling baby toys beginning(a), and then toys for older children, as it responded to customer demand. In 1957, Lazarus opened the first toy supermarket, which combined specialty retailing and off-price positioning. In May 1999, the familiarity formed a new division, Toysrus.com. The following year, Toysrus.com teamed up with Amazon.com to form a co-branded online toy store. ANALYSIS OF TOY R US MAJOR constancyToys "R" Us specializes in the provision of toys, apparel and baby needs to childrenand their families. The Toys "R" Us family, which includes Toys "R" Us, Babies "R" Us,Imaginarium and Toysrus.com. It has ope rations in 25 countries, mainly the US,Japan, Canada, and Europe, and sells toys, games, bicycles, sporting goods, VHSvideo tapes, electronic and video games, small pools, books, infant and juvenilefurniture and similar items and electronics, as well as educational and entertainmentcomputer software for children. DESCRIPTION OF PRODUCT AND SERVICE toneToys R Us, Inc is engaged in the operation of retail stores consisting of U.S. locations comprised of toy stores nether the name Toys R Us, childrens clothing store... ...     1.8233Z-SCORE ABOVE 2.99--YOURE IN GOOD requireZ-SCORE BETWEEN 2.99 and 1.81--WARNING SIGNSZ-SCORE BELOW 1.81--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCYCONCLUSION AND RECOMMENDATIONSThe liquid state ratios show an increase in the current and acid-test (quick) ratios during the last three years. This coincides with an increase/stockpiling of inventory and an increase in short-term debt which is detrimental to Toys R Us immediate debt paying ability. The Debt to Equity ratio is within the industriousness average which is welcome news to long-term creditor but unwelcome to joint stockholders bec ause they benefit from pluss provided by creditors. The asset utilization ratios (Account receivable, Inventory turnover, Total asset turnover, etc) are all increasing which is a positive. However, the companys turnover ratios are much slower than the industry average which indicates too some obsolete goods on hand and/or overstocked inventory. The Gross margin ratio is much lower than the industry average which indicates managements inability to control productions cost and a lower measure of profitability. The debt utilization ratios