Analysis: (use Excel to complete this section)
- Provide common-size analysis of your companys income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas).
- Provide horizontal analysis of your companys income statement and balance sheet, showing the dollar amount and percent of change using the 2 most recent years (you must use an Excel spreadsheet with formulas).
- Perform ratio analysis on your company using the ratios listed in Exhibit 13.16 on page 505 of your text (these must be in an Excel spreadsheet, using formulas to calculate the ratios). You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc.).
BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except per share data) February 27, 2021 February 29, 2020 $ 1,352,984 1,671,909 595,152 3,620,045 19,545 918,418 1,587,101 311,821 $ 6,456,930 $ 1,000,340 385,642 2,093,869 248,342 98,092 3,826,285 20,380 1,430,604 2,006,966 506,280 $ 7,790,515 986,045 636,329 312,486 360,061 Assets Current assets: Cash and cash equivalents Short term investment securities Merchandise inventories Prepaid expenses and other current assets Assets held-for-sale Total current assets Long term investment securities Property and equipment, net Operating lease assets Other assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued expenses and other current liabilities Merchandise credit and gift card liabilities Current operating lease liabilities Liabilities related to assets held-for-sale Total current liabilities Other liabilities Operating lease liabilities Income taxes payable Long term debt Total liabilities Shareholders' equity: Preferred stock - $0.01 par value; authorized - 1,000 shares; no shares issued or outstanding Common stock - $0.01 par value; authorized - 900,000 shares; issued 343,241 and 343,683, respectively; outstanding 109,621 and 126,528 shares, respectively Additional paid-in capital Retained earnings Treasury stock, at cost; 233,620 and 217,155 shares, respectively Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. 2,294,921 82,279 1,509,767 102,664 1,190,363 5,179,994 944,194 675,776 340,407 463,005 43,144 2,466,526 204,926 1,818,783 46,945 1,488,400 6,025,580 3,432 3,436 2,152,135 10,225,253 (11,048,284) (55,600) 1,276,936 $ 6,456,930 2,167,337 10,374,826 (10,715,755) (64,909) 1,764,935 $ 7,790,515 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Twelve Months Ended February 27, February 29, 2021 2020 March 2, 2019 $ (150,773) $ (613,816) $(137,224) 340,912 338,825 342,511 27,357 (29,690) (412) (77,038) 1,062 127,341 31,594 148,741 (396) 509,226 45,676 (145,543) (3,446) 509,905 58,514 (104,089) (814) 64,947 Cash Flows from Operating Activities: Net loss Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Loss on sale leaseback transaction Gain on sale of building Gain on debt extinguishment Loss on sale of businesses including impairment of assets held for sale Goodwill and other impairments Stock-based compensation Deferred income taxes Other Decrease (increase) in assets: Merchandise inventories Trading investment securities Other current assets Other assets (Decrease) increase in liabilities: Accounts payable Accrued expenses and other current liabilities Merchandise credit and gift card liabilities Income taxes payable Operating lease assets and liabilities, net Other liabilities Net cash provided by operating activities Cash Flows from Investing Activities: Purchases of held-to-maturity investment securities Redemption of held-to-maturity investment securities Net proceeds from sales of businesses Proceeds from sale-leaseback transaction Proceeds from sale of a building Capital expenditures Net cash provided by (used in) investing activities 506,334 21 (4,781) 218 106,928 86,277 269,186 218 (387,172) 1,519 168,556 15,538 (12,110) 54,958 (32,813) (26,758) 268,108 (124,206) 61,864 1,154 (22,783) (2,899) 14,054 590,941 (90,657) (77,147) 16,016 8,360 (35,918) 918,278 (443,500) 545,000 (734,424) 538,925 386,500 534,457 267,277 (183,077) $ 737,880 (277,401) 91,376 11,183 (325,366) $(509,682) $ February 27, 2021 Twelve Months Ended February 29, 2020 March 2, 2019 (4,224) (148,073) (99,710) 236,400 (457,827) (332,529) (47,550) (23,108) (7,690) (85,482) (86,287) 2,346 (182,846) (632,304) (238,584) Cash Flows from Financing Activities: Borrowing of long-term debt Repayments of long-term debt Repurchase of common stock, including fees Prepayment under share repurchase agreement Payment of dividends Payment of deferred financing fees Proceeds from exercise of stock options Net cash used in financing activities Effect of exchange rate changes on cash, cash equivalents, and restricted cash Net increase in cash, cash equivalents and restricted cash Change in cash balances classified as held-for-sale Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash: Beginning of period End of period See accompanying Notes to Consolidated Financial Statements. (7,181) 162,831 5,075 378,759 4,815 383,574 (977) 498,494 (4,815) 493,679 162,831 1,023,650 $1,407,224 529,971 $ 1,023,650 367,140 $ 529.971 Formula Measure of Ratio Liquidity and Efficiency Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover = Current assets Short-term debt-paying ability Current liabilities Cash + Short-term investments + Current receivables Immediate short-term debt-paying Current liabilities ability Net sales Efficiency of collection Average accounts receivable, net Cost of goods sold Efficiency of inventory Average inventory management Accounts receivable, net X 365 Liquidity of receivables Net sales Ending inventory x 365 Liquidity of inventory Cost of goods sold Net sales Efficiency of assets in producing Average total assets sales Days' sales uncollected Days' sales in inventory Total asset turnover Solvency Debt ratio Creditor financing and leverage Equity ratio Total liabilities Total assets Total equity Total assets Total liabilities Total equity Income before interest expense and income Interest expense Debt-to-equity ratio Owner financing Debt versus equity financing Times interest earned Protection in meeting interest payments Profitability Profit margin ratio Gross margin ratio Net income in each sales dollar Gross margin in each sales dollar Return on total assets Overall profitability of assets Net income Net sales Net sales - Cost of goods sold Net sales Net income Average total assets Net income Preferred dividends Average common stockholders' equity Shareholders' equity applicable to common shares Number of common shares outstanding Net income Preferred dividends Weighted-average common shares outstanding Return on common stockholders' equity Book value per common share Basic earnings per share Profitability of owner investment Liquidation at reported amounts Net income per common share Market Prospects Price-earnings ratio Market value relative to earnings Market price per common share Earnings per share Annual cash dividends per share Market price per share Dividend yield Cash return per common share BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except per share data) February 27, 2021 February 29, 2020 $ 1,352,984 1,671,909 595,152 3,620,045 19,545 918,418 1,587,101 311,821 $ 6,456,930 $ 1,000,340 385,642 2,093,869 248,342 98,092 3,826,285 20,380 1,430,604 2,006,966 506,280 $ 7,790,515 986,045 636,329 312,486 360,061 Assets Current assets: Cash and cash equivalents Short term investment securities Merchandise inventories Prepaid expenses and other current assets Assets held-for-sale Total current assets Long term investment securities Property and equipment, net Operating lease assets Other assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued expenses and other current liabilities Merchandise credit and gift card liabilities Current operating lease liabilities Liabilities related to assets held-for-sale Total current liabilities Other liabilities Operating lease liabilities Income taxes payable Long term debt Total liabilities Shareholders' equity: Preferred stock - $0.01 par value; authorized - 1,000 shares; no shares issued or outstanding Common stock - $0.01 par value; authorized - 900,000 shares; issued 343,241 and 343,683, respectively; outstanding 109,621 and 126,528 shares, respectively Additional paid-in capital Retained earnings Treasury stock, at cost; 233,620 and 217,155 shares, respectively Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. 2,294,921 82,279 1,509,767 102,664 1,190,363 5,179,994 944,194 675,776 340,407 463,005 43,144 2,466,526 204,926 1,818,783 46,945 1,488,400 6,025,580 3,432 3,436 2,152,135 10,225,253 (11,048,284) (55,600) 1,276,936 $ 6,456,930 2,167,337 10,374,826 (10,715,755) (64,909) 1,764,935 $ 7,790,515 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Twelve Months Ended February 27, February 29, 2021 2020 March 2, 2019 $ (150,773) $ (613,816) $(137,224) 340,912 338,825 342,511 27,357 (29,690) (412) (77,038) 1,062 127,341 31,594 148,741 (396) 509,226 45,676 (145,543) (3,446) 509,905 58,514 (104,089) (814) 64,947 Cash Flows from Operating Activities: Net loss Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Loss on sale leaseback transaction Gain on sale of building Gain on debt extinguishment Loss on sale of businesses including impairment of assets held for sale Goodwill and other impairments Stock-based compensation Deferred income taxes Other Decrease (increase) in assets: Merchandise inventories Trading investment securities Other current assets Other assets (Decrease) increase in liabilities: Accounts payable Accrued expenses and other current liabilities Merchandise credit and gift card liabilities Income taxes payable Operating lease assets and liabilities, net Other liabilities Net cash provided by operating activities Cash Flows from Investing Activities: Purchases of held-to-maturity investment securities Redemption of held-to-maturity investment securities Net proceeds from sales of businesses Proceeds from sale-leaseback transaction Proceeds from sale of a building Capital expenditures Net cash provided by (used in) investing activities 506,334 21 (4,781) 218 106,928 86,277 269,186 218 (387,172) 1,519 168,556 15,538 (12,110) 54,958 (32,813) (26,758) 268,108 (124,206) 61,864 1,154 (22,783) (2,899) 14,054 590,941 (90,657) (77,147) 16,016 8,360 (35,918) 918,278 (443,500) 545,000 (734,424) 538,925 386,500 534,457 267,277 (183,077) $ 737,880 (277,401) 91,376 11,183 (325,366) $(509,682) $ February 27, 2021 Twelve Months Ended February 29, 2020 March 2, 2019 (4,224) (148,073) (99,710) 236,400 (457,827) (332,529) (47,550) (23,108) (7,690) (85,482) (86,287) 2,346 (182,846) (632,304) (238,584) Cash Flows from Financing Activities: Borrowing of long-term debt Repayments of long-term debt Repurchase of common stock, including fees Prepayment under share repurchase agreement Payment of dividends Payment of deferred financing fees Proceeds from exercise of stock options Net cash used in financing activities Effect of exchange rate changes on cash, cash equivalents, and restricted cash Net increase in cash, cash equivalents and restricted cash Change in cash balances classified as held-for-sale Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash: Beginning of period End of period See accompanying Notes to Consolidated Financial Statements. (7,181) 162,831 5,075 378,759 4,815 383,574 (977) 498,494 (4,815) 493,679 162,831 1,023,650 $1,407,224 529,971 $ 1,023,650 367,140 $ 529.971 Formula Measure of Ratio Liquidity and Efficiency Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover = Current assets Short-term debt-paying ability Current liabilities Cash + Short-term investments + Current receivables Immediate short-term debt-paying Current liabilities ability Net sales Efficiency of collection Average accounts receivable, net Cost of goods sold Efficiency of inventory Average inventory management Accounts receivable, net X 365 Liquidity of receivables Net sales Ending inventory x 365 Liquidity of inventory Cost of goods sold Net sales Efficiency of assets in producing Average total assets sales Days' sales uncollected Days' sales in inventory Total asset turnover Solvency Debt ratio Creditor financing and leverage Equity ratio Total liabilities Total assets Total equity Total assets Total liabilities Total equity Income before interest expense and income Interest expense Debt-to-equity ratio Owner financing Debt versus equity financing Times interest earned Protection in meeting interest payments Profitability Profit margin ratio Gross margin ratio Net income in each sales dollar Gross margin in each sales dollar Return on total assets Overall profitability of assets Net income Net sales Net sales - Cost of goods sold Net sales Net income Average total assets Net income Preferred dividends Average common stockholders' equity Shareholders' equity applicable to common shares Number of common shares outstanding Net income Preferred dividends Weighted-average common shares outstanding Return on common stockholders' equity Book value per common share Basic earnings per share Profitability of owner investment Liquidation at reported amounts Net income per common share Market Prospects Price-earnings ratio Market value relative to earnings Market price per common share Earnings per share Annual cash dividends per share Market price per share Dividend yield Cash return per common share
