5-204-270 Revised April 15‚ 2005 ARTUR RAVIV AND TIMOTHY THOMPSON Bed Bath & Beyond: The Capital Structure Decision “Bed Bath & Beyond’s earnings report could have been called Bed Bath & Brag‚” according to the New Jersey newspaper The Record in April 2004.1 However‚ Bed Bath & Beyond (BBBY) had the performance to back up its boastfulness. Since going public in 1992‚ the home goods retailer‚ based in Union‚ New Jersey‚ had never missed an earnings estimate. For fiscal year 2003 (ending
Premium Balance sheet Generally Accepted Accounting Principles Asset
Advance Corporate Finance - Bed Bath and Beyond Case Questions: You are BBBY’s CEO‚ Steven Temares. It is April 2004 and you are about to decide what to do with the company’s excess cash: - Keep it? - Pay it out and issue debt? You structure your analysis by answering the following questions: 1. What is wrong with building up cash? Provide (at least two) reasons in favor and against keeping cash in the firm. Against: By paying out excess cash and issuing debt‚ BBBY could improve
Premium Stock market Stock Finance
Statement of Problem Bed‚ Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash
Premium Management Education Decision making
Q. 1: Explain how Bed Bath & Beyond practices the retailing concept. A. 1: Bed Bath and Beyond practices the retailing concept by being value-driven and goal oriented. By maintaining annual sales of 6 billion (not to mention the 15 years of consecutive profit)‚ BB&B has clearly met the customer’s standards by offering convenient and multiple store locations‚ excellent store atmosphere‚ and an assortment of indispensable merchandise. BB&B also practices the retailing concept by giving their
Premium Sales Retailing Customer service
the company the word of mouth. Inconsistency Management’s discussion and analysis of financial condition and results reveals that increase in sales is around 80% due to new stores and existing stores sale increase is around 20% (See Bed Bath & Beyond -page 15‚ 16&17). Also it has been described that any new store gives highest sale in 2nd and 3rd year‚
Premium Revenue Generally Accepted Accounting Principles Financial ratio
Bed Bath and Beyond’s Business Risk Bed Bath & Beyond Inc. is a nationwide chain of 575 retail stores selling domestics merchandise (bed linens‚ bath items‚ and kitchen textiles) and home furnishings (kitchen and tabletop items‚ small appliances‚ and basic house wares). In 2003 Bed Bath and Beyond reported annual revenues (gross profit) of approximately $1.8 billion‚ net income of $339 million and net sales of $4.5 billion‚ representing 22% growth in revenue and 32% growth in income as compared
Premium Stock Finance Stock market
Running head: BBBY Case Study Bed Bath & Beyond (BBBY) Case Study Rajib L. Mishra & Sukumar Haldar Corporate Finance (K4115) Abstract Description: The Bed‚ Bath‚ and Beyond case requires that students assess the future growth of a company by using financial statement analysis. This is a team project and should be completed in groups of four students. The case questions below are meant to guide you through the analysis. Questions: 1. Assess Bed‚ Bath & Beyond’s (BBBY) business‚ operating
Premium Financial ratios Balance sheet Corporate finance
Business Analysis Part I: Bed Bath and Beyond (BBBY) Management 521/MBAY10K3R1 November 18‚ 2011 Abstract Bed Bath and Beyond‚ Inc.‚ (BBBY) and its subsidiaries are a chain of retail stores operating under the names Bed Bath and Beyond‚ Christmas Tree Shops‚ Harmon‚ Harmon Face Values‚ and buybuy BABY. The company focuses on home furnishings and domestic merchandise. The company sells a wide assortment of domestic merchandise. The Fortune 500 currently lists the company at 304.
Premium Retailing Department store
Bed‚ Bath and Beyond Case Analysis 1. Study BBBY’s historical results in the “Historical Performance” worksheet contained in the “BBBY” EXCEL workbook. What overall conclusion about BBBY’s recent operating and financial condition do the numbers support? Back up your conclusion by listing the six most critical observations you discern from your analysis of the numbers. Conclusion: BBBY is a home goods industry leader in sales growth‚ margins and return on equity. The company continues to
Premium Stock Stock market
Bed bath and Beyond Local Area Network Phani Kumar Pillarisetty IST 8100 Wilmington University Table of Contents Abstract............................................................................................................................................5 Introduction.....................................................................................................................................6 Advantages and disadvantages...................................................
Premium Marketing UCI race classifications Strategic management