“The Financial Reporting Project” This group project was created for the course “Financial Accounting & Reporting” (ACCT 1231, 9:15am). Northeastern University, Spring 2010. Instructor: Peggy O’ Kelly.
Authors: George Banis, Soraya Berges, Emily Liu.
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Table of Contents Project Requirements ...................................................................................................................... 3 Selected Research Resources .......................................................................................................... 6 Company Background .................................................................................................................... 7 Developments Relating to the Company ........................................................................................ 8 Understanding the Annual Report and 10K .................................................................................... 9 Financial Ratios ............................................................................................................................ 12 Profitability ................................................................................................................................... 13 Liquidity and Capital Structure..................................................................................................... 14 International Financial Reporting Standards ................................................................................ 15 Recommendations ......................................................................................................................... 18 Ratio Calculations (Barnes & Noble) ........................................................................................... 19 Ratio Calculations (Books-A-Million) ......................................................................................... 20 Bibliography ................................................................................................................................. 22
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Project Requirements This project involves an in-depth analysis of a publicly traded company, and a comparison to its peers in the industry. The project should be completed in groups of four participants. You are free to form your own groups. If you are unable to form/find a group, see your professor no later than the fourth class meeting.
Each group should provide its top two choices from the list of companies included in this project. The Professor will approve companies on a first-come, first-served basis and hence it is important for your group to decide on your top two choices as soon as possible and communicate it to the Professor.
As soon as you receive approval from the Professor, your group must obtain a copy of your company’s latest Annual Report or 10-K. You can do this by downloading and printing the documents from your company’s website or from the EDGAR database at the Securities & Exchange Commission (www.sec.gov).
The project is completed in two phases. The first phase emphasizes a basic understanding of the company and the business and economic environment in which it operates. It also requires that you obtain an understanding of the information provided in the Annual Report or 10-K. The final phase involves computation of ratios and financial analysis, including an investment recommendation. At the conclusion of the final phase, you will also evaluate each member of your group by completing the evaluation form included in this packet.
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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The report is completed in two phases so that the entire work on the project is not deferred until the end of the term. Further, by turning in two reports, you will obtain timely feedback from your professor that will help you improve your performance in the final report. Each progress report requires a group leader to coordinate the work. Rotate your group leader for each progress report.
Based on past experience, the following procedures will help you maximize your performance in the project: •
Each group member should independently complete the assignments required for each progress report before meeting with other members of the group.
•
The group meetings should review all of the individual work, investigate and resolve disagreements, and work together to prepare written reports.
•
After the draft of each report is completed, each person in the group should review the draft to ensure that the writing is concise and clear, and that the spelling and grammar are appropriate, before turning in the final draft to the professor.
The quality of the project will be judged on the basis of a collective, not an allocated effort. Experiencing the challenges and the rewards of working as a group in a business setting is an integral part of the learning process in this course. Individual grades may be adjusted based on the evaluation of the group members submitted by each member.
A major objective of the project is to help develop your communication skills, including the ability to communicate clearly and concisely. Hence each report is restricted to the following maximum page length.
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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PROGRESS REPORT 1
5 pages maximum (excluding charts or appendix)
PROGRESS REPORT 2
5 pages maximum (excluding appendix)
Your report must be typewritten (word-processed) and double-spaced. To ensure consistency, you must use a 12-point font and a 1” margin throughout (left, right, top and bottom). Supporting calculations should be typed and included in the report or attached as an appendix.
VERY IMPORTANT: POINTS WILL BE DEDUCTED FROM YOUR REPORT IF THE INSTRUCTIONS BELOW ARE NOT FOLLOWED!
When you submit your reports to your professor, clearly state: Your class meeting time (e.g., 8 am M,W,Th); The name of your company; and The full names of ALL of your Group Members (For example, listing groups members’ names as Al, Sue, and Jack is not acceptable)
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Selected Research Resources The following internet resources may be helpful in completing the Financial Reporting Project. Note that these are not exhaustive and you should feel free to explore other websites on your own.
http://www.sec.gov/edgarhp.htm: Website of the Securities & Exchange Commission--provides important SEC filings (e.g., 10K) online.
http://www.hoovers.com: This site helps you locate your company’s website.
http://www.bigcharts.com: A very good site to chart company stock price and find basic information.
http://www.nasdaq.com: A comprehensive website providing useful information about companies listed on NASDAQ as well as the NYSE.
http://www.reuters.com: This web site provides comparative information about companies.
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Company Background (A) The ticker symbol for Barnes and Noble is BKS and it is traded on the New York Stock Exchange (NYSE.) (B) The name of the auditing firm is BDO Seidman, LLP. This firm audited Barnes and Noble’s financial statements for the purpose of obtaining reasonable assurance that the financial statements are free of material misstatement. The auditing firm’s responsibility is to examine the evidence supporting the amounts and disclosures in the financial statements, assess the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. This research is to ensure that the company fairly presents, in all material respects, their financial position in conformity with accounting principles generally accepted in the United States of America. (C) Barnes and Noble’s is one of the nation’s largest booksellers through its bookstores and its website. The Company offers a “community store” concept with a comprehensive title base, a cafe, a children’s section, a music/DVD department, a magazine and newspapers section, an eBook Reader (Nook) and a calendar of ongoing events, such as author appearances and children’s activities which make each Barnes and Noble store an active part of its community. Through Sterling Publishing Co., Inc., the Company is also a leading general trade publisher.
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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The Company’s main competition is from other book superstores, such as Amazon Com, Inc., Books-A-Million, Inc., and Borders Group, Inc. (D) The closing price of BKS on February 19, 2010 was $ 21.68.
Developments Relating to the Company (A) The demand for products in general in the retail industry declined, due to the unprecedented economic upheaval. The bookselling industry posted declines at levels never before experienced because of the economic situation. However, there was an increase in children’s department sales, and an increase in membership card enrollments. (B) The economic crisis was the most significant event that has affected the company recently. Nevertheless, Barnes and Noble was prepared for the economic crisis, taking measures such as reducing inventory levels, overhead and operating expenses, and effectively ceasing negotiations for new stores.
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Understanding the Annual Report and 10K (1) Until 2007, the net income had been steadily increasing, but since 2008 and during the years 2008 and 2009 the net income decreased due to the economic crisis. Year
2009
2008
2007
2006
2005
Net Income (in thousand $)
75,920
135,799
150,527
146,681
143,376
Growth Rate
-44.094%
-9.784%
2.622%
2.305%
(2) The trends show that the Gross Margin Percentage decreases from 2007 to 2008, then increases again from 2008 to 2009. A possible explanation is that due to the economic recession, Barnes and Noble released employees and closed down some of its stores leading to fewer expenses in the areas of wages, rent, and maintenance. Year
2009
2008
2007
Gross Margin %
30.9%
30.3%
31.1%
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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(3) Using the data acquired by the company’s annual report, 57.6% of the total assets are current, 27.4% are property and equipment and the rest 15% are other non-current assets. Assets
Amount
% of total assets
Cash & cash equivalents
281,608
9.41%
Receivables
80,998
2.71%
Merchandise inventories
1,203,471
40.20%
Prepaid expenses & other current assets
127,028
4.24%
Current assets of discontinued operations
30,199
1.01%
Total current assets
1,723,304
57.56%
Land & improvements
9,298
0.31%
Buildings & leasehold improvements
1,096,801
36.63%
Fixtures and equipment
1,385,454
46.28%
Accumulated depreciation
1,670,839
55.81%
Net property & equipment
820,714
27.41%
Goodwill
240,008
8.02%
Intangible assets
83,443
2.79%
Deferred taxes
110,098
3.68%
Other noncurrent assets
8,000
0.27%
Noncurrent assets of discontinued operations
8,321
0.28%
Total assets
2,993,888
100.00%
(4) Barnes and Noble uses accumulated depreciation and accumulated amortization, which accounted for approximately 27.9% of the Company’s total assets. Depreciation is computed using the straight-line method over estimated lives. Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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(5) Barnes and Noble uses the retail inventory method on the FIFO basis for 97% and 98% of its merchandise inventories as of January 31, 2009 and February 2, 2008, respectively. The inventory turnover ratio for the last three years has been increasing, which means that the inventory has moved more quickly due to the nature of the goods sold (fast moving goods). Year
2008
2007
2006
Cost of goods sold
3,540,596
3,679,845
3,534,097
Average inventory
1,280,821
1,360,719
1,334,289
Inventory turnover ratio
2.764
2.704
2.649
(6) Using the data acquired by the company’s annual report, 71.2% of the total liabilities are current and 28.8% are non-current. Liabilities
1/31/2009
% of total liabilities
Accounts Payable
746,599
36.028%
Accrued Liabilities
710,269
34.275%
Current Liabilities of Discontinued Operations
18,807
0.908%
Total Current Liabilities
1,475,675
71.210%
Deferred taxes
189,268
9.133%
Other long-term liabilities
393,006
18.965%
Noncurrent liabilities of discontinued operations
12,713
0.613%
Minority Interest
1,612
0.078%
Total non-current liabilities
596,599
28.790%
Total liabilities
2,072,274
100.000%
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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(7) The retained earnings consistently increased each year over the course of the past three years, as did the common stock. However, the total stockholders’ equity did decrease throughout the three years. (8) The 10-K is an annual report which provides comprehensive information of Barnes and Noble performance. This report includes information such as company history, organizational structure, risk factors, financial data, legal proceedings among others. In general, the 10-K form reflects the company’s performance and the nature of the information is very formal since this form is requested by the government.
Financial Ratios Barnes & Noble
Books-A-Million
Return on Equity
0.0761
0.129
Return on Assets
0.0249
0.061
Earnings per Share
1.277
1.019
Profit Margin
0.015
0.031
Current Ratio
1.168
1.349
Quick Ratio
0.352
0.122
Receivable Turnover
0.386
63.261
Inventory Turnover
2.764
1.85
Times Interest Earned
12.193
20.371
Debt to Equity Ratio
2.249
1.876
Price/Earnings Ratio
56.774
12.078
*see last page for calculations of financial ratios Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Profitability (1) In order to assess the profitability of Barnes and Noble in recent years, we anal yzed the first three financial ratios (Return on Equity, Return on Assets, and Earnings per Share.) Barnes and Noble has a 0.0761 return on equity, which illustrates its inefficiency at generating profits from every unit of shareholders’ equity. Books-A-Million on the other hand, has a 0.129 return on equity, which is larger than Barnes and Noble’s, and proves that Barnes and Noble is less efficient in this aspect of profitability. Furthermore, Barnes and Noble has a greater return on assets with a ratio of 0.0249, while Books-A-Million has a ratio of 0.061. This shows that Barnes and Noble earns less dollars from each dollar of assets they control. This is a very clear way of comparing two competing companies in the same industry in viewing their profitability. Lastl y, if the earnings per share of Barnes and Noble are compared with those of Book-AMillion, we noticed that Barnes and Noble has a greater return on the initial investment amount. In other words, for every share of common stock, the investor earns $1.28 for Barnes and Noble, rather than $1.02 for Book-A-Million. (2) The cash flows from operating activities for Barnes and Noble is $376,249, which is significantly higher than the net income ($75,920.) The factors that have contributed to the difference are the losses and gains, changes in current assets and current liabilities, and non-cash expenses such as depreciation and amortization. Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Liquidity and Capital Structure (1) We believe that Barnes and Noble would be able to meet its obligations as they become due because it has a current ratio of 1.168, which shows that it has enough resources to pay its debts. In short, it has more assets than it does liabilities, so even in an extreme situation, it would ultimatel y be capable of paying off its liabilities using its assets. Books-A-Million has a current ratio of 1.349, which shows that it has even more of an ability to meet its debt obligations. In order to get a better idea of each firm’s capability of meeting its obligations, we also looked at the quick ratio. In terms of the quick ratio, Barnes and Noble (0.352) is in a better position than Books-A-Million (0.122). The ratios are still below 1, so both companies would still have to sell their inventories in order to pay off their current liabilities. However, Barnes and Noble has a higher inventory turnover (2.764) than Books-A-Million (1.85,) proving that it sells merchandise at a higher velocity. Thus Barnes and Noble is more likely to be able to sell all their merchandise in order to pay their short-term debt. (2) The assets of Barnes and Noble are almost equally financed by liabilities and stockholders’ equity. Specifically, liabilities finance 49.29% of the company’s assets and stockholder’s equity the remaining 50.71%. Barnes & Noble Capital Structure: Assets
Liabilities
Stockholders’ Equity
2,993,888
1,475,675
1,518,213
49.29%
50.71%
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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(3) The capital structure of Barnes & Noble’s competitor is significantly different. Specifically, Books-A-Million uses its liabilities to finance 65.22% of the company’s assets and its stockholders’ equity to finance the remaining 34.78%. Ultimately, Books-A-Million relies more heavily on liabilities in order to generate revenue. Books-A-Million Capital Structure: Assets
Liabilities
Stockholders' Equity
284,833
185,782
99,051
65.22%
34.78%
International Financial Reporting Standards (1) International Financial Reporting Standards (IFRS) are a set of principles-based accounting standards, interpretations, and framework developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements. These standards remove some of the subjectivity from financial reporting and provide a consistent basis for recognition, measurement, presentation and disclosure of transactions and events in financial statements. (2) IASB stands for International Accounting Standards Board and is an independent private-sector body founded on April 1, 2001 as the successor of IASC (International Accounting Standards Committee) based in London, UK. IASB is responsible for setting the IFRS. Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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(3) Some significant differences between US GAAP and IFRS: Financial periods required: IFRS requires that comparative information must be disclosed in respect to the previous period for all amounts reported in the financial statements. Under US GAAP comparative financial statements are presented; however a single year may be presented in certain circumstances. Layout of balance sheet and income statement: IFRS requires organizations to use a minimum of items in their financial statements even though if a standard layout is not required. US GAAP does not require either of the two. Income statement – classification of expenses: US GAAP requires all SEC registrants to present expenses based on function whereas IFRS accepts both function and nature base presentations of expenses. However, if function is selected, certain disclosures about the nature of expenses must be included in notes. Inventory costing methods: IFRS prohibits the use of LIFO as a method to account for inventory. US GAAP offers a choice as to which inventory method to use. Inventory measurement: Under IFRS, inventory is carried at the lower of cost or net realizable value. Under US GAAP inventory is carried at the lower cost of market. (4a)
Significant differences between US GAAP and IFRS regarding inventory may be found under costing methods and measurement. IFRS doesn’t accept LIFO as a costing method, but B&N uses FIFO so it would be unaffected. Furthermore, IFRS requires inventory to be carried at the Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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lower cost of net realizable value. Our company uses the net realizable value in order to determine the market and then states merchandise inventories at the lower cost of market. Therefore, adopting IFRS would not cause significant differences to the way our company reports inventory. (4b) Areas that would be impacted if Barnes & Noble adopted IFRS: • Financial statement presentation • Development costs for intangible assets • Method of determining impairment of long lived and/or intangible assets • Debt vs. equity classification • Leases of land and building • Income taxes • Revenue Recognition
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Recommendations (1) Based on the quick ratio, we would be reluctant to loan money to Barnes and Noble because in order to pay off its current liabilities, its quick assets are not enough without selling part of its inventory. Nonetheless, the inventory turnover ratio proves its capability of rapidly selling inventory. On the other hand, we would be willing to loan money to Barnes and Noble in the long run because its total assets still exceed their total liabilities, as proven by the current ratio, which demonstrates its capability of paying off long-term debt. (2) If an individual does not already have shares in Barnes and Noble, he/she should not buy the stock in this company because it requires a high investment for low returns, as shown by the Price/Earnings Ratio (56.774.) Furthermore, if an individual already has shares, we would recommend keeping the shares unless he/she finds another more profitable option. The reason why we recommend keeping the shares if he/she already owns them is because the earnings per share ratio (1.277) indicates a $1.28 of net income for each share of Common Stock outstanding, which is reasonable proof of a profitable company.
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Ratio Calculations (Barnes & Noble) Return on Equity ே௧ ூ ௩ ௌ/ா
=
ହ, ହ, ହ,ଽଶ ହ,ଽଶ = ,ଵ = 0.0761 ଽଶଵ, ଽଶଵ,ଵସା ଵସାଵ,ସ, ସ,ଶ ÷ଶ ଽଽ଼, ଽଽ଼
Return on Assets ே௧ ூା ூାூ௧௦௧ ா௫௦ ௩ ்௧ ௦௦௧௦
=
ହ, , ହ,ଽଶ ାଵ,଼ଵଶ ,ଷଶ = = 0.0249 ଶ,ଽଽଷ, ଽଽଷ,଼଼଼ା ଼଼଼ା ଷ,ଶସଽ, ଶସଽ,଼ଶ ÷ଶ ଷ,ଵଶଵ, ଵଶଵ,଼ହ
Earnings per Share ே௧ ூ ௩ # ௦௦ ௌ ௨௧௦௧ௗ
=
ହ, ହ,ଽଶ ହହ, ହହ,ଶା ଶାଷ, ଷ,ଶ ÷ଶ
=
ହ, ହ,ଽଶ ହଽ, ହଽ,ସଷସ. ସଷସ.ହ
= 1.277
Profit Margin ே௧ ூ ே௧ ௌ௦ ோ௩௨
=
ହ, ହ,ଽଶ = 0.015 ହ,ଵଶଵ, ଵଶଵ,଼ସ
=
ଵ,ଶଷ, ଶଷ,ଷସ = 1.168 ଵ,ସହ, ସହ,ହ
Current Ratio ௨௧ ௦௦௧௦ ௨௧ ௧௦
Quick Ratio ொ௨ ௦௦௧௦ ௨௧ ௧௦
=
௨௧ ௦௦௧௦ି ௦௦௧௦ିூ௩௧௬ ூ௩௧௬ ௨௧ ௧௦
=
ଵ,ଶଷ, ଶଷ,ଷସି ଷସିଵ,ଶଷ, ଶଷ,ସଵ ଵ,ସହ, ସହ,ହ
= 0.352
Receivable Turnover ே௧ ௗ௧ ௌ௦ ௩ ே௧ ோ௩௦
ଷ, ଷ,ଷଵଵ
= = (଼, ଼,ଽଽ଼ା ଽଽ଼ାଵ, ଵ,ଵଷ) ଵଷ)÷ଶ
ଷ, ଷ,ଷଵଵ ଽସ, ଽସ,. .ହ
= 0.386
Inventory Turnover ௦௧ ீௗ௦ ௌௗ ௩ ூ௩௧௬
ௌ௦ି ௌ௦ିீ௦௦ ௧
ହ,ଵଶଵ, ଵଶଵ,଼ସି ଼ସିଵ,ହ଼ଵ, ହ଼ଵ,ଶ଼
ଷ,ହସ, ହସ,ହଽ
= = = = 2.764 ௩ ூ௩௧௬ (ଵ,ଶଷ, ଶଷ,ସଵା ସଵାଵ,ଷହ଼, ଷହ଼,ଵ) ଵ)÷ଶ ଵ,ଶ଼, ଶ଼,଼ଶ. ଼ଶ.ହ
Times Interest Earned ே௧ ே௧ ூ ା ூ௧௦௧ ா௫௦ ା ூ ்௫௦ ா௫௦ ூ௧௦௧ ா௫௦
=
ହ, ହ,ଽଶା ଽଶାଶ,ଷସସା ଷସସାହହ, ହହ,ହଽଵ ଵ, ଵ,ଽ଼
= 12. 12.193
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Debt to Equity Ratio ்௧ ௧௦ ௌ௧ ௌ௧ௗ௦ ௗ௦′ ா௨௧௬
=
ଶ,ଶ, ଶ,ଶସ = 2.249 ଽଶଵ, ଽଶଵ,ଵସ
Price/Earnings (P/E) Ratio ௨௧ ெ௧ ௌ ா௦ ௌ
଼଼
= = 56.774 ଵ.ହହ
Ratio Calculations (Books-A-Million) Return on Equity ே௧ ூ ௩ ௩ ௌ/ா
=
ଵ, ଵ, ଵ,ହଶଶ ଵ,ହଶଶ = ଽଽ, ଽଽ,ହଵା ହଵାଵହ, ଵହ,ଷସ ÷ଶ ଵଶ଼, ଵଶ଼,ସଶ. ସଶ.ହ
= 0.129
Return on Assets ே௧ ூା ூାூ௧௦௧ ா௫௦ ௩ ்௧ ௦௦௧௦
=
ଵ, ଵ, ଵ,ହଶଶ ାଵ,ଷସ ଵ,଼଼ = ,ସଷହ = 0.061 ଶ଼ସ, ଶ଼ସ,଼ଷଷା ଼ଷଷା ଷସ, ଷସ,ଷ ÷ଶ ଶଽସ, ଶଽସ
Earnings per Share ே௧ ூ ௩ # ௦௦ ௌ ௨௧௦௧ௗ
=
ଵ, ଵ,ହଶଶ ଵ, ଵ,଼ଽା ଼ଽାଵ, ଵ,ଷହଶ ÷ଶ
=
ଵ, ଵ,ହଶଶ ଵ, ଵ,ଶଶ. ଶଶ.ହ
= 1.019
Profit Margin ே௧ ூ ே௧ ௌ௦ ோ௩௨
=
ଵ, ଵ,ହଶଶ = 0.031 ହଷହ, ହଷହ,ଵଶ଼
=
ଶଶ, ଶଶ,ଷଷଽ = 1.349 ଵ଼, ଵ଼,ହହସ
Current Ratio ௨௧ ௦௦௧௦ ௨௧ ௧௦
Quick Ratio ொ௨ ௦௦௧௦ ௨௧ ௧௦
=
௨௧ ௦௦௧௦ି ௦௦௧௦ିூ௩௧௬ ௨௧ ௧௦ ௧௦
=
ଶଶ, ଶଶ,ଷଷଽି ଷଷଽିଶ, ଶ,଼ଷ ଵ଼, ଵ଼,ହହସ
= 0.122
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Receivable Turnover ே௧ ௗ௧ ௌ௦ (௦௦) ௦௦) ௩ ே௧ ோ௩௦
ହଷହ, ହଷହ,ଵଶ଼
= = (ଵଷ, ଵଷ,଼଼ଵା ଼଼ଵାଷ,ଷ) ଷ)÷ଶ
ହଷହ, ହଷହ,ଵଶ଼ ଼,ସହଽ
= 63. 63.261
Inventory Turnover ௦௧ ீௗ௦ ௌௗ ௌௗ ௩ ூ௩௧௬
ଷ, ଷ,ହ଼
ଷ, ଷ,ହ଼
= = = 1.850 (ଶ, ଶ,଼ଷା ଼ଷାଶ, ଶ,ଶ) ଶ)÷ଶ ଶଷ, ଶଷ,ହହ. ହହ.ହ
Times Interest Earned ே௧ ூ ା ூ௧௦௧ ா௫௦ ା ூ ்௫௦ ா௫௦ ூ௧௦௧ ா௫௦
=
ଵ, ଵ,ହଶଶା ହଶଶାଵ,ଷସା ଷସାଽ,ହହଶ ଵ,ଷସ
= 20. 20.371
Debt to Equity Ratio ்௧ ௧௦ ௌ௧ ௌ௧ௗ௦ ௗ௦′ ா௨௧௬
=
ଵ଼ହ, ଵ଼ହ,଼ଶ = 1.876 ଽଽ, ଽଽ,ହଵ
Price/Earnings (P/E) Ratio ௨௧ ெ௧ ௌ ா௦ ௌ
=
ଵଶ. ଵଶ.ସସ = 12.078 ଵ.ଷ
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010
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Bibliography www.wikipedia.org www.iasb.org www.ifrs.com www.ey.com http://www.hoovers.com/company/Barnes__Noble_Inc/rjhryi-1-1njea3.html http://www.barnesandnobleinc.com/for_investors/annual_reports/annual_reports.html http://www.marketwatch.com/investing/stock/bks/historical Barns & Noble 2008 Annual Report Books-A-Million 2008 Annual Report Libby, Libby, Short. “Financial Accounting.” Sixth Edition. McGraw-Hill, 2009. http://www.sec.gov/Archives/edgar/data/890491/000119312509070384/0001193125-09-070384index.htm
Financial Accounting and Reporting Group Project: Barnes & Noble by: George Banis, Soraya Berges, Emily Liu Northeastern University, Spring 2010