A Comprehensive Financial Analysis Essay -- essays research papers

A Comprehensive Financial AnalysisOfTOYS R USTABLE OF CONTENTSCompany Overview ....................................................... 4 linchpin Facts........................................................................ 4Business Description.................................................... 5History ............................................................................ 6Key Employees .............................................................. 7Major Products And Services..................................... 12Products And Services Analysis................................ 13SWOT Analysis ............................................................ 14 slip by Competitors .......................................................... 18Company View ............................................................. 19Locations and Subsidiaries........................................ 24HISTORYToys "R" Us was established in 1948 as a baby furniture break in in Washington DC , byCharles Lazarus at the young age of 25 . Mr. Lazarus began a business totally dedicated to kids and their needs just in cadence for the post-war baby boom era. The store started off by selling baby take ons first, 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 company formed a new division, Toysrus.com. The following year, Toysrus.com teamed up with Amazon.com to form a co-branded online toy store. abridgment OF TOY R US MAJOR INDUSTRYToys "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 operations 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 LINEToys R Us, Inc is engaged in the operation of retail stores consisting of U.S. locations comprised of toy stores under the name Toys R Us, childrens clothing store... ...     1.8233Z-SCORE ABOVE 2.99--YOURE IN GOOD SHAPEZ-SCORE BETWEEN 2.99 and 1.81--WARNING SIGNSZ-SCORE BELOW 1.81--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCY mop up AND RECOMMENDATIONSThe liquidity ratios show an increase in the current and acid-test (quick) ratios during the last three years. This coincides with an increasing/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 intentness average which is welcome news to long-term creditor but unwelcome to common stockholders because the y get ahead from assets 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 more than slower than the industry average which indicates too many 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 costs and a lower measure of profitability. The debt utilization ratios