I need a 4 page Essay on Best-buy which should include. A competitor analysis an
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I need a 4 page Essay on Best-buy which should include. A competitor analysis and comparison to industry averages should be presented. Reference and sources must be cited has to be original and must pass Turnitin!
Prepare a paper (4-5 pages) that analyzes the financial strengths and weaknesses of the company examined (Best-Buy) is the company. Best buys financial statement is below , however you can look up additional data yourself as well.
ANNUAL FINANCIALS FOR BEST BUY CO. INC. Consolidated Balance Sheets Fiscal year is Feb.-Jan. (USD in millions except for per share data) 2011 2012 2013 2014 2015 Assets Cash and cash equivalents $1,103 $1,199 $1,826 $2,678 $2,432 Short-term investments 22 0 0 223 1,456 Receivables 2,348 2,288 2,704 1,308 1,280 Merchandise inventories 5,897 5,731 6,571 5,376 5,174 Other current assets 1,103 1,079 946 900 703 Current assets held for sale 0 0 0 0 684 Total current assets $10,473 $10,297 $12,047 $10,485 $11,729 Property and Equipment Land and buildings 766 775 756 758 611 Leasehold improvements 2,318 2,367 2,386 2,182 2,201 Fixtures and equipment 4,701 4,981 5,120 4,515 4,729 Property under capital lease 120 129 113 120 119 7,905 8,252 8375 7575 7660 Less accumulated depreciation 4,082 4,781 5,105 4,977 5,365 Net property and equipment 3,823 3,471 3,270 2,598 2,295 Goodwill 2,454 1,335 528 425 425 Tradenames, Net 133 130 0 0 0 Customer Relationships, Net 203 229 0 0 0 Intangibles, Net 0 334 101 57 Equity and Other Investments 328 140 0 0 0 Other Assets 435 403 608 404 583 Non-current assets held for sale 0 0 0 0 167 Total Assets $17,849 $16,005 $16,787 $14,013 $15,256Explanation / Answer
Strength and weakness of the Best-Buy Company:
Total current assets:
Cash and cash equivalents increased gradually from 2011 to 2013 and huge increase in 2014. However, compared to 2014 cash and cash equivalents decreased in 2015. Reduced cash balance decreases the ability to effective operating activities and investing activities which is the weakness of the company.
Company invested in short term investments for better returns which are increased to $1,456 in 2015 which is strength of the company.
Decrease of receivables can be understood as effective collections of sales which are decreased from year to year except 2013. Receivables can also be reduced as increment in cash sales rather than credit sales. If decrease of receivables is not due to effective collection of receivables it is weakness of the company.
Current assets held for sale may be marketable securities which are ready to sell as and when cash is needed is a great strength of the company as it increases the current and quick ratios of the company.
Property and equipment:
As there are no much additional purchases net property and equipment decreases from year to year till 2015 as accumulated depreciation increases from year to year. It is also understood that accumulated depreciation decreased in 2014 which reflects the sale of equipment. As there is no must difference in equipment from year to year it is neither strength nor weakness to the company.
Intangible assets:
Though it is intangible, value of intangible assets place crucial role in success and survival of any company. In present case, goodwill and Trade names decreased drastically from 2011 to 2015 which is great weakness of a company. Therefore, BB Company must take immediate action to improve its goodwill or else company would ceases to exist sooner or later.
Though other assets fluctuating from year to year, non-current assets held for sale increase in 2015. Company invested in non-current assets which are held for sale category reflects $167.
Note: All dollar amounts used in above analysis are million dollars.
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