Manipulation Diagnostics Expense Manipulation Diagnostics Potential “Red Flags” Undo Accounting Distortions Ratio Analysis Forecast Financials Liquidity Analysis Profitability Analysis Capital Structure Analysis Extended Ratio Analysis SGR and IGR Analysis Forecasting Valuation Analysis Cost of Equity Cost of Debt WACC Method of Comparables Intrinsic Valuation Models Altman Z-Score Analyst Recommendation Appendix Works Cited 3 7 8 9 10 11 12 13 14 14 16 16 18 20 21 23 26 29 30 31 31 37 44 46 47 47
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Manipulation Diagnostics Expense Manipulation Diagnostics Potential “Red Flags” Undo Accounting Distortions Ratio Analysis Forecast Financials Liquidity Analysis Profitability Analysis Capital Structure Analysis Extended Ratio Analysis SGR and IGR Analysis Forecasting Valuation Analysis Cost of Equity Cost of Debt WACC Method of Comparables Intrinsic Valuation Models Altman Z-Score Analyst Recommendation Appendix Works Cited 1 3 7 8 9 10 11 12 13 14 14 16 16 18 20 21
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February 28, 2014 Volume XL, Issue II Bed Bath & Beyond Inc. Nasdaq: BBBY Dow Jones Indus: 16,321.71 S&P 500: 1,859.45 Russell 2000: 1,183.03 Index Component: S&P 500 Initially Probed: Volume XXXVIII, Issue VII & VIII @ $69.77 Last Probed: Volume XXXIX, Issue XI & XII @ $76.52 Trigger: No Type of Situation: Business Value Price: Shares Outstanding (MM): Fully Diluted (MM): Average Daily Volume (MM): $ 67.82 209.7 212.3 (1.2%) 2.6 Market Cap (MM): Enterprise Value
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Harvard Business School 9-196-123 Rev. May 10, 2000 Bed Bath & Beyond Strange as it may seem, there’s something romantic about housewares. Visit the giant Bed Bath & Beyond store in Manhattan on a busy Saturday and you’ll see all kinds of couples kissing and cooing as they discuss what size sofa pillows to buy or whether a certain set of burgundy towels will match their bath mats. It’s just one more bit of evidence that America has been in a cocooning mood the past few years. And few people
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Harvard Business School 9-196-123 Rev. May 10, 2000 Bed Bath & Beyond Strange as it may seem, there’s something romantic about housewares. Visit the giant Bed Bath & Beyond store in Manhattan on a busy Saturday and you’ll see all kinds of couples kissing and cooing as they discuss what size sofa pillows to buy or whether a certain set of burgundy towels will match their bath mats. It’s just one more bit of evidence that America has been in a cocooning mood the past few years. And few people
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revenue annually. With the exception of the recession in 2008- 2009 fiscal year, revenue has steadily increased in the past 11 years. Other key figures such as the cash flow and net profit has also shown favorable upward trends. It is also worthy to point out that the partnership has operated with negligible amounts of long term debt in the past 11 years of it operations.The company has also been gradually repurchasing its outstanding common stock shares, indicating the company's confidence in
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generate substantial income and cash flow Our overriding focus is on the substantial growth opportunity in North America We believe there is substantial opportunity for international growth and expect it to be accretive to the total company operating margin We are targeting 10% annual operating income $ growth (or better) and an operating income rate in the high-teens We continue to emphasize maintaining a strong cash and liquidity position while optimizing our cost of capital We will continue to manage
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Bed Bath & Beyond George Irungu, Jobin Kadapapurath, Peter Kozelka, Vignesh Krishnan & Abena P. Kuttin-Saulka Columbia University TMGTK4115: Accounting and Finance for Technology Abstract Objective: To analyze the effects of Bed Bath & Beyond’s (BBBY) rapid expansion strategy on the company and to determine if such a strategy is sustainable. Methods: We used data extracted from financial statements and applied sustainability ratios such as the DuPont ratio. Results: Bed Bath &
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industry within their gross margin, credit ratios, total revenue, tangible book value and receivables. Yet, they are above their competitors in the industry in gross profits, capital expenditures, levered free cash flow, cash from operations, and total debt to equity ratio. The estimated revenue for Ross Stores for 2013 is stated to be around $9.7 billion which is $1.1 billion higher than the revenue for 2012 (BussinessWeek Earnings, 2012). The total return to investors in 2009 was 45.7%. Ross Stores
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Bed Bath & Beyond “The Capital Structure Decision” Advanced Corporate Finance Everaars, Tim 6160492 Groenenberg, Erik 6178944 Kruitwagen, Max 6359744 Veldkamp, Max 6270581 1. What is wrong with building up cash? Provide (at least two) reasons in favor and against keeping cash in the firm. You need a cash reserve for bad economic times. If business is not going very well, you’re making losses, you need some
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