Toys"r"us Financial Analysis

Toys"R"Us Financial Analysis

A part of a company's financial accounting department duties is the preparation of the public Financial Statements. The company has to provide these statements every reporting period to comply with SEC rules and regulations. This is the analysis of said public statements for a company with local presence in Puerto Rico, in this case Toys"R"Us is the company selected. This retailer holds an impressive 30% of the total toys business for the US and is reworking their strategy by including a stronger electronic business and a higher end line with the addition of the FAO Schwarz line of products in 2010. The information used was obtained from both the Balance Sheet and Income Statement for their last financial reporting period as obtained from the Bloomberg website. Wall Street and other public web information were also used in this analysis.

From there it was found that their total assets at the end of their last financial reporting period amounted to a total of $8,842 million of which $3,437 million where current assets. Most of the money in current assets is tied to inventory, which was reported to stand at $2,232 million. Another $5,405 million where reported as long term assets such as long term investments and fixed assets such as buildings and land owned by the company. This total amount of assets can tell us two things, how much that company has at hands in order to pay creditors and also the strength and solidity of the company for a potential investor. It can also give us insight into how the company operates, the amount of fixed assets let's us know that it's likely they own at least some of their store's buildings and land. Another fact worth mentioning is that if we compare this last reporting period's total assets against last year's the amount of total assets increases by $10 million coming from other long term investments, and cash and near cash assets actually decreased by $300 million to a total of $701 million.