A Comprehensive Financial Analysis Essay -- essays research papers

A general Financial AnalysisOfTOYS R USTABLE OF CONTENTS phoner Overview ....................................................... 4Key Facts........................................................................ 4Business Description.................................................... 5History ............................................................................ 6Key Employees .............................................................. 7Major Products And Services..................................... 12Products And Services Analysis................................ 13 bring up Analysis ............................................................ 14Top Competitors .......................................................... 18Company View ............................................................. 19Locations and Subsidiaries........................................ 24HISTORYToys "R" Us was established in 1948 as a baby furniture store in Washington DC, byCharles La zarus at the young age of 25 . Mr. Lazarus began a business altogether dedicated to kids and their needs just in time for the post-war baby shell era. The store started off by selling baby toys first, and then toys for sr. children, as it responded to customer demand. In 1957, Lazarus opened the first toy supermarket, which combine 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. abstract 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, clean-living goods, VHSvideo tapes, electronic and video games, sm all in all pools, books, infant and juvenilefurniture and similar items and electronics, as well as educational and entertainment reckoner software for children. DESCRIPTION OF PRODUCT AND SERVICE LINEToys R Us, Inc is act 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 down the stairs 1.81--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCYCONCLUSION AND RECOMMENDATIONSThe liquidity ratios show an increment in the current and acid-test (quick) ratios during the last three years. This coincides with an increasing/stockpiling of parentage and an increase in short-term debt which is detrimental to Toys R Us flying debt paying ability. The Debt to Equity ratio is within the industry average which is delicious news to long-term creditor but unwelcome to common stockholders becau se they benefit 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 a lot s refuse than the industry average which indicates too many obsolete goods on hand and/or overstocked inventory. The Gross margin ratio is much disappoint than the industry average which indicates managements inability to control productions costs and a lower measure of profitability. The debt utilization ratios