Business cycles: phases, indicators, measures, economic evolution, outlooks
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My chosen organization is Bed, Bath and Beyond, Inc. (BBBY)
1. How sensitive do you think your organization is to economic expansions (upswings) and contractions (downswings or recessions)? Explain. If you believe that your organization's performance is not sensitive to general economic business cycles, then explain why it is stable as the economy moves up and down. CAUTION: You must be specific in your reasoning, with the focus directly on your SLP organization rather than making general comments that apply to any organization. On December 19, 2012, Bed, Bath & Beyond reported "net earnings of $1.03 per diluted share ($232.8 million) in the fiscal third quarter..." This is an increase of approximately 8.4% versus net earning of $0.95 per diluted share ($228.5 million) in the same quarter 2011. Consumer spending in Bed Bath & Beyond is a barometer of where we'll likely see the e early signs of a recovery. Because indicators show that as consumers are very likely to improve their homes when they're willing to spend on discretionary items. Instead of buying luxury items or new cars, consumers are spending on their homes for extra comfort and simple conveniences.
Associated Press reported that yield curve for BBBY was flat. A yield curve is "a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates." At the end of January, 2013, Goldman Sachs downgraded BBBY from neutral to sell with a price target from $66 to $56. Since then, with Oppenheimer's upgrade, the price went up to $59. BBBY's flat yield curve means there's little difference between short and long-term rates for bonds of the same credit quality. According to its third quarter earnings as reported by Nasdaq on December 19, 2012, the company reported $1.03 per share with revenues of $2.7 billion versus their original estimate of $2.25 billion. On a year-over-year basis, the company's revenue grew during each of the past four quarters, this is up 1.8% from the previous year's figures. If the Federal Reserve decided to raise interest rates, it could lead to higher taxes in the future but it also depends on other variables in the economy. For example, it could cause financial hardship to those consumers with large mortgages However, a rise in interest rates could be a benefit to those with savings. Moreover, a rise in housing prices could spur consumers to spend. Therefore, a rise in interest rates may have less impact on reducing growth of consumer spending, therefore it may not have a an impact on Bed, Bath & Beyond. Year over year, Bed Bath & Beyond Inc. has been able to grow revenues. With around 5,600 suppliers, the company has maintained a diversified supplier base with the largest supplier representing around 8% of the total purchases. Over the past 4 years their total revenue, EPS and cash flow has consistently grown. In fact from 2009 to 2012, they grew from $7.2 billion to $9.5 billion. Their EPS has grown from $2.10 to $4.06 and free cash flow rose from $256 million to $982 million. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 26.65% to 24.87%. This was a driver that led to a bottom line growth from $425.1 million in 2009 to $989.5 million in 2012. Therefore, my assessment of the overall financial health of Bed, Bath and Beyond Inc. is that it is still a strong investment.
2. The Fed has forecasted future economic conditions and they are found in the Fed's Beige Book. Please choose the one most important economic condition that might affect your company's future performance. Confine yourself to only one. Bed Bath & Beyond Inc’s strengths can be seen in multiple areas: such as growth in revenues and growth in earnings per share. Investors can also see a
year by Bed Bath & Beyond contains vital information identifying the firm’s key accounting policies. Bed Bath & Beyond 4 must be efficient managing operating costs, maintaining sufficient inventory levels, and must possess strong expansion initiatives. In keeping with generally accepted accounting principles (GAAP), Bed Bath & Beyond follows aggressive accounting policies. The quality of disclosure that a 10-k provides is of high importance to potential investors. Bed Bath & Beyond inadequately…
BED BATH & BEYOND Suggested Study Questions 1. How would you characterize the business risk of Bed Bath & Beyond? Review their financial performance. BBBY is special since they are selling products that are produced by name brand companies, and if any products needing repair could be sent directly back to the name brand company. Therefore, there are no switching costs for BBBY since they have no control on the quality of the products they sell. However, there fixed…
Product #1 Green Bed, Bath and Beyond 6th Ave., Copco Eco-first Sierra Tumbler in Pink, first floor, water bottle section Tumbler from Copco features a uniquely designed Stir N Sip Straw that is ideal for blending your favorite cold drinks. Has locking mechanism on the lid allows you to click it closed with just a turn, ensuring it stays locked and leak-free. Has textured non-slip grip and a no-sweat sleeve for easy carrying, plus all the parts are dishwasher safe. 24-ounce capacity. 100% BPA-free…
14) TJX Companies, Inc. has stores in 15 countries, on two continents, and has relationships with over 15,000 vendors globally. TJX Companies imports a great deal of merchandise from South East Asia and is often subject to various political risks beyond their control, i.e. changes in tariffs, duties, quotas, import and export restrictions, compliance with laws concerning ethical business practices (U.S. Foreign Corrupt Practices Act), currency exchange rates, human rights issues, working conditions…
Kelly Okamura U57912123 SM 323 (A4) Core Pre-Assignment Part I Health Consciousness We live in an entirely progressive generation where we are bombarded by a plethora of newly emerging social trends. In fact, it seems that as soon as we are made aware of what is currently “trending,” a new social trend is discovered. However, what has seemed to steadfastly hold as trends are the fitness and health related ones. A few years ago, Atkins and the South Beach Diet were the most promising diet…
cries during anytime 2 Bella 4 in 1 fixed side crib, change table and clothing organizer, Espresso Wal-Mart 337.87 The function of the bed is a place where the child sleep during night time and the change table is used for changing his dippers and the dress is to put all his clothing in Toddler mattress Wal-Mart 67.77 The mattress is used in the bed so the child can sleep on it Bacati Mod diamonds and stripes valance, aqua and chocolate Wal-Mart 20.09 The curtains are used to block…
Situation Analysis Company Sunbeam has offered innovative products to household families for over 100 years and is a publicly traded company. In 1910 Sunbeam introduced their first iron. In 1930 Sunbeam introduced the Mixmaster stand mixer. The mix master stand mixer became the single most popular small kitchen appliance in the country. In 1998, the US Postal Service dedicated a stamp in honor of the famous Mixmaster as one of the country’s greatest innovations. Sunbeam has been known for…
half a million Facebook fans are a true testament to that fact that we’ve “made it in America.” Tervis now has 28 company stores across the country, tervis.com, and the brand is sold in more than 8,000 retailer locations nationwide, including Bed Bath & Beyond, Macy’s and Dick’s Sporting Goods. Because of our quality, we are able to partner with the top brands like the NFL, MLB, Disney, Marvel, Warner Bros., Harley-Davidson and Hallmark, just to name a few. Due to increased popularity, we have made…
product. The customer began looking for the practical value of these products. For example, All Hotels provide rest and sleep. The aim is to ensure that your potential customers purchase your one service. Thus the functional attributes like Room, Bed, Bath are important. 3. Expected Product This is about all aspects the consumer expects to get when they buy a product. For example, when the customer choose a hotel, they want to get what they pay for. If they pay more, they expect the room will be…
Queer History. Chicago: The University of Chicago Press, 1999. (hb). ISBN: 0-226-35471-7. John Howard in his 1999 book Men Like That: A Southern Queer History explores gay and transgendered male-male sexual desire and actions that goes beyond self- identification as being gay and includes those men that are “like” that and self -label as gay, as well as men who “like” that and engage in homosexual activity but do not consider themselves gay. Howard aims for a more accurate accounting…