Toys R Us Company Research Paper Example | Topics and Well Written Essays - 2500 words

Toys R Us Company - Research Paper Example The Toys â€Å"R† Us firm went public during 1978 and started to branch out its products (Brohan, par 3). In the 1980’s Toys â€Å"R† Us stretched out into global markets as well as expanded its brand line to encompass children’s clothing. In the 1990’s, Toys â€Å"R† Us further grew into the baby product marketplace with Babies â€Å"R† Us (Lombardi, par 4). Additionally, Toys â€Å"R† Us assimilated the renowned New York toy store FAO Schwarz together with its online websites during 2009. Items from this New York high-end shop are now in Toys â€Å"R† Us stores too (Brohan, par 4). Toys â€Å"R† Us Inc. runs more than eight hundred and seventy five Babies â€Å"R† Us and Toys â€Å"R† Us shops within the U.S., more than six hundred and twenty five worldwide stores as well as over one hundred and forty licensed shops within 35 nations as well as its jurisdictions. Toys â€Å"R† Us board of dir ectors is comprised of nine members with Gerald Storch as the Chairman as well as the Chief Executive officer (Brohan, par 6). In an ever developing online retailing marketplace, Toys â€Å"R† Us has also developed itself as a virtual retailer. Toys â€Å"R† Us operates many online retail websites. Babiesrus.com and toysrus.com have various international websites and are among the highly visited websites for clients looking for kids’ products (Lombardi, par 5). ... During 2012 Toys â€Å"R† Us sales of toys went down by a percentage of 3.5 to 20.47 billion dollars within the U.S, the global major toy market, rendering to a research company NPD Group. Previously, Toys â€Å"R† Us articulated that its same-stores sales within the US had gone down by 4.5% within the 9 weeks from 28th October to 29th December, a crucial time for toys’ sales (Brohan, par 8). Toys â€Å"R† Us total sales of toys went down by 4.7% in that period. Toys â€Å"R† Us Inc. has not stated toys’ sales results for its current fiscal year. During the year that concluded during 2012, January, same-store sales went down at home as well as within the global business, whereas total sales rocketed from 45 million dollars to 13.9 billion dollars (Lombardi, par). From this analysis, the Toys â€Å"R† Us Inc. is feasible to venture into emerging markets such as India. Despite the toy sales drop, Toys â€Å"R† Us total sales incre ment shows that the company can afford to venture new markets or emerging markets, which can boost its toy sales and generate more returns for the company (Brohan, par 5). India’s economic development was grounded upon socialist-inspired policies following the independence. It encompassed state-ownership of numerous sectors, regulations as well as red tape that was referred to as ‘License Raj’ in addition to safeguarding from the global markets. India’s political economy has rapidly transmuted with the economy’s liberalization during the 1990s (Maps of India, par 1). India has currently moved into a market-based structure and it is the global second speediest growing quintessential economy following China. India documented the highest gross domestic product rate of 9 percent in 2007. India’s growth has currently reached 7.5

Business Finance Ratios Essay Example | Topics and Well Written Essays - 500 words

Business Finance Ratios - Essay Example Debt ratios signify the use of debt in acquiring the assets of the company. It signifies how the company has financed its assets and through what combination of debt and equity. Riordan Manufacturing has a higher debt ratio as compared to Kuddler foods however it must also be noted that the use of higher debt may also be favorable for the firm as it allow them to magnify their P/E ratio due to the impact of debt on taxable income of the firm. Apart from that the higher debt will allow firms to get the tax benefits also. However it also must be noted that the higher debt may be risky as taking more debt means putting on more burden on the existing resources to pay back the debt rather than being channeled into the more productive resources. Profit Margin is a ratio of great importance as it actually indicates what company is earning after paying off all its costs. This is in its essence is one of the key ratios of the success of the firm. In this regard, the profit margin of Riordan Manufacturing is less than that of the Kuddler Fine Foods. This can be because of the differences in their industry. Riordon being in manufacturing sectors has to incur costs which Kuddler, being in grocery business, may not incur. Further, the low profit margin for Riordon may also be attributed to its higher fixed costs ratio in its overall cost structure. Return on Assets is another very critical indicator of the how efficient firm is in running and managing its resources. High asset turnover and return on assets clearly indicate the level of professionalism and management approach. The ratio is significant in the sense that it provides management the vital indicator of how the firm is managing its assets to derive the sales. A low ratio would mean that it is taking more assets of the firm to generate the desired level of the return thus inefficient approach to managing the firm