Analyze the cash for Bed Bath & Beyond. What are the Cash and Cash Equivalent ba

Question

Analyze the cash for Bed Bath & Beyond.

What are the Cash and Cash Equivalent balances and the Cash Flow from Operations?
Is there a cash burn?
What does the company management believe to be their cash position?
https://seekingalpha.com/article/4083666-careful-free-cash-flow-defense-bed-bath-and-beyond
Do you agree with the company management?
Looking at: Cash Flow from Operating Activities Expected Dividends Expected Capital Spending,
Do you expect the company to require additional financing?

Period Ending: Trend 2/25/2017 2/27/2016 2/28/2015 3/1/2014 Net Income $685,108 $841,489 $957,474 $1,022,290 Cash Flows-Operating Activities Depreciation $290,914 $273,947 $239,193 $220,116 Net Income Adjustments $94,274 $113,990 $27,439 $47,063 Changes in Operating Activities Accounts Receivable $0 $0 $0 $0 Changes in Inventories ($38,493) ($121,748) ($161,506) ($117,926) Other Operating Activities ($33,970) ($31,132) $12,656 ($16,746) Liabilities $43,955 ($64,362) $103,233 $226,929 Net Cash Flow-Operating $1,041,788 $1,012,184 $1,178,489 $1,381,726 Cash Flows-Investing Activities Capital Expenditures ($373,574) ($328,395) ($330,637) ($320,812) Investments $82,922 $52,763 $379,406 ($42,570) Other Investing Activities ($201,277) $0 $0 $0 Net Cash Flows-Investing ($491,929) ($275,632) $48,769 ($363,382) Cash Flows-Financing Activities Sale and Purchase of Stock ($526,598) ($1,091,476) ($2,209,400) ($1,229,180) Net Borrowings $0 ($7,646) $1,500,000 $0 Other Financing Activities $0 $0 $0 $0 Net Cash Flows-Financing ($580,727) ($1,088,752) ($704,931) ($1,210,054) Effect of Exchange Rate $3,624 ($7,801) ($13,269) ($6,745) Net Cash Flow ($27,244) ($360,001) $509,058 ($198,455)

Explanation / Answer

2/25/2017 2/27/2016 2/28/2015 3/1/2014 Cash Flow-Operations 1041788 1012184 1178489 1381726 Net Cash Flows-Investing -491929 -275632 48769 -363382 FCF=CFO+Net CFI 549859 736552 1227258 1018344 Without initial cash balances, it can be said that there is cash burn in all the three years except the year ended 2015--as the cash used is greater than the cash generated ,in those years. Yes. All the company generated FCF has been used up in share repurchases. No.Normally external financing is sought only for capacity-expansion purposes, when higher sales demands are forecasted.Also, the company has been able to generate FCFs in all the years .But it has gone for buy-back --may be to influence the market prices or in the absence of any other profitable avenues of investment.

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