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Financial analysis of Pier 1 Imports'

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Use the Pier 1 Imports' financial statements to answer the following questions:

Does Pier 1 have a significant amount of bad debts? How can you tell?

What types of debt does Pier 1 Company have? Where did you find this information?

In addition to selling treasury stock, a company may use treasury stock when stock options are exercised or when debt is converted to stock. Pier 1 used some of its treasury shares to do this during 2000 and 2001. Where is this disclosed in the financial statements? Describe how the dollar amount of treasury shares on the comparative balance sheets decreased while, at the same time, the statement of cash flows shows cash outflow for the purchase of treasury shares.

Please add your file.

Research and find a company to analyze. Prepare a report including the following information:

What is the history of this company? How did it begin? What differentiates this company from its competitors?

Compute the following ratios for this company:
current ratio
inventory turnover ratio
accounts receivable turnover ratio
debt to equity
return on assets
return on equity
gross margin on sales

What do these ratios indicate about the company?

Who would be interested in each of the ratios listed above? Why?

How well is this company doing? If possible, find the industry ratios for comparison.

What other information would be useful for investors and creditors in making economic decisions about this company?

Would you invest in this company?

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Solution Preview

Use the Pier 1 Imports' financial statements to answer the following questions:

Does Pier 1 have a significant amount of bad debts? How can you tell?

What types of debt does Pier 1 Company have? Where did you find this information?

In addition to selling treasury stock, a company may use treasury stock when stock options are exercised or when debt is converted to stock. Pier ...

Solution Summary

This discusses the financial analysis of Pier 1 Imports'

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