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3 pages/β‰ˆ825 words
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3 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Research Paper
Language:
English (U.S.)
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MS Word
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Topic:

Best Buy Financial Analysis

Research Paper Instructions:

Project: Best Buy is the selected U.S. publically-traded company. Perform a financial analysis of your selected company. Your study report should include the following: 1. Company Overview: Discuss the selected company history, its operations, markets, and company business product lines. 2. Financial Analysis: Collect the selected company financial statements (balance sheets and income statements) and financial ratios for the past 4 years (2009 2010 2011 2012). Use the following financial data and ratios to perform the required financial analysis: a. Sales b. Operating costs c. Liquidities ratios: current ratios and quick ratios d. Asset Management ratios: DSO, inventory turnover ratios, and asset turnover e. Profitability ratios: PM, ROA, and ROE 3. Conclusion: Based on your analysis, is the selected company a good investment opportunity? If so, why? Project Report Format Your project report must be typed, double spaced, using Times New Roman font of size 12 and submitted in Microsoft Word. All external sources must be cited using APA format. Your references must also follow APA format. Your final report must also include a cover page containing the title of the assignment, students’ names, professor’s name, course title, and the assignment date. Please be advised that the cover page, references, and appendixes are not included in the required assignment page length. Source of financial data: www(dot)morningstar(dot)com You are required to perform financial analysis. Do not include definitions of financial ratios or formulas or how to compute a given ratio. You are required to perform financial analysis interpreting the collected financial data. You are required to explain why PM was high or low on a given year for example. Financial analysis should include analysis of the firm sales, operating costs, debt, liquidity ratios, profitability ratios, asset management ratios, debt ratios, market ratios, and the analysis of the company stock prices.

 

 Project:

 

Best Buy is the selected U.S. publically-traded company. Perform a financial analysis of your selected company.  Your study report should include the following:

 

  1. Company Overview: Discuss the selected company history, its operations, markets, and company business product lines.
  2. Financial Analysis: Collect the selected company financial statements (balance sheets and income statements) and financial ratios for the past 4 years (2009 2010 2011 2012). Use the following financial data and ratios to perform the required financial analysis:
  3. a.      Sales
  4. b.      Operating costs
  5. Liquidities ratios: current ratios and quick ratios
  6. Asset Management ratios: DSO, inventory turnover ratios, and asset turnover
  7. Profitability ratios: PM, ROA, and ROE
    1. Conclusion: Based on your analysis, is the selected company a good investment opportunity? If so, why?  

 

Project Report Format

 

Your project report must be typed, double spaced, using Times New Roman font of size 12 and submitted in Microsoft Word. All external sources must be cited using APA format. Your references must also follow APA format. Your final report must also include a cover page containing the title of the assignment, students’ names, professor’s name, course title, and the assignment date. Please be advised that the cover page, references, and appendixes are not included in the required assignment page length.

 

Source of financial data: www(dot)morningstar(dot)com

 

You are required to perform financial analysis. Do not include definitions of financial ratios or formulas or how to compute a given ratio. You are required to perform financial analysis interpreting the collected financial data. You are required to explain why PM was high or low on a given year for example.  Financial analysis should include analysis of the firm sales, operating costs, debt, liquidity ratios, profitability ratios, asset management ratios, debt ratios, market ratios, and the analysis of the company stock prices.

 

Research Paper Sample Content Preview:
Best Buy Financial Analysis
Student:
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Best Buy Financial Analysis
Company overview
Best Buy Co., Inc. basically operates as a multi-channel and an international retailer of technology products in a number of countries which include Mexico, China, Canada as well as the United States. The stores of Best Buy offer consumer electronics that consist largely of home theatres and television; Blu-ray and DVD players; camcorders and digital cameras. The company also offers portable electronics like headphones, speakers and MP3 devices; navigation and satellite radio, car stereo along with all the related accessories (Yahoo Finance, 2014). Moreover, Best Buy’s stores also offer cell phone and computing products such as desktop and notebook computers, e-readers and tablets; entertainment products including video gaming software and hardware. Best Buy has a workforce of 140,000 workers and is committed to help in delivering the technology solutions that offer value and enable access to ideas, knowledge, fun and people – be it through mobile device, online or in the company’s stores (Yahoo Finance, 2014).
Financial Analysis
Sales:
Table 1: Best Buy financial report showing sales figures for 2009, 2010, 2011 and 2012 (Morning Star, 2014)
YearSales/Revenue figure ($)% change200945.01 billion-201049.69 billion4.2% increase201150.27 billion1.16% increase201250.71 billion 0.86% increaseAs illustrated in the table above, the company’s sales has been increasing year-on-year from 45.01 billion reported in 2009 to an impressive 50.71 recorded in the year 2012. This implies that the company has a positive growth pattern, which is good news for potential investors.
Operating costs/expenses:
Table 2: Best Buy’s operating costs for 2009, 2010, 2011 and 2012 (MorningStar, 20144)
YearOperating costs ($)20099.128 billion20109.925 billion201110.523 billion201211.488 billion
Since the year 2009, Best Buy’s operating costs has been increasing as shown in the figure above, from $9.128 billion posted in 2009 to $11.288 that was recorded in the year 2012. Best Buy should find ways lowering operating expenses/costs which have been increasing steadily since 2009. The expenses can be lowered investing in business improvements, improving efficiency or cutting costs.
Liquidity ratios: current ratio and quick ratio
Table 3: Financial statement data for Best Buy 2009-12 (Morningstar, 2014)
2009 ($)2010 ($)2011 ($)2012 ($)Current Assets8.19 billion10.57 billion10.47 billion10.3 billionCurrent Liabilities8.44 billion8.98 billion8.66 billion8.86 billionShort-Term Investments11 million90 million22 million-Account Receivables1.868 billion2.02 billion2.348 billion2.288 billionCash & Equivalents498 million1.826 billion1.103 billion1.199 billion
Current Ratio
Current Ratio (CR) = Current A...
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