This website uses cookies to ensure you have the best experience. Learn more

Best Buy, Accounting Essay

630 words - 3 pages

Best Buy
Annual Report Project
Summary and Conclusions
1. Company’s Performance:

Profitability:
(Gross Margin, Profit Margin, Return on assets, Return on shareholder’s equity, Return on Market Equity)
* In recent years , Best Buy Co., Inc. has seen revenues shrink from $50705M USD to $45085 USD, and the company‘s net income from $1317USD to -441M USD.
*
Activity:
* Poor Inventory Management
* Total assets turnover is 2.99 in 2013, total assets management of the company is seems higher than Store competitors Radioshack, hhgregg , Aaron’s, Inc.
* Inventory Turnover is turn down year to year 7.19 to 6.08
* Low Account Receivable Turnover ratio implies, the ...view middle of the document...

* Best Buy must master in at least one of these value streams Operational Excellence, Customer Intimacy or Product Leadership. 

4. How company is doing in relation to the industry averages

5. Overall Assessment of the Company’s Operations and Outlook
SWOT Analysis:
Strengths
 
* Company size and extensive (domestic and global) distribution network 

* Core competency in technology services through Geek Squad

* Well-known brand

* Strong past performance

* Robust internet presence and online infrastructure
 
Weaknesses

Major governance Issues
 
Recent senior leadership turnover in the midst of a crisis (governance, market shift)
(in 2012, Best Buy pulled out of the UK ,removed the founder and chairman of the board, closed many stores, reshuffled management and is trying to deal with its own governance issues
In addition, BB is facing a significant market paradigm shift towards online e-commerce, mobility, cloud computing, internet taxation, music and video streaming.

Weakening financial situation
 
Too many brands; CinemaNow, Geek Squad, MagnoliaAudio Video, MindShift and Pacific Sales
 
Poor inventory management

Poor Capital Structure

Declining sales revenues

Competitors...

Other Papers Like Best Buy, Accounting

Early Accounting Essay

2073 words - 9 pages buy the buns and the dogs. Count the expense when you sell them. In other words, match the expense of the item with the revenue of the item. Accrual-based accounting, which is a term you've probably heard, is what you get when you apply the revenue principle, the expense principle, and the matching principle. In a nutshell, accrual-based accounting means that you record revenue when a sale is made and record expenses when goods are used or

The Impact Of Information Technology On Accounting

2983 words - 12 pages shares people meet to swap, buy and sell hand-crafted and second-hand goods. If accounting information is to be useful, it must be expressed in terms of: (a) (b) (c) (d) 5. personal taste social factors environmental factors all of the above. The retail market is where: (a) (b) (c) (d) 4. What are we trying to achieve? What information do we need? How long will it take? Which course of action will we choose

Discuss The Need For Regulation In Financial Reporting

1540 words - 7 pages , some companies might adjust their liability figures in order to secure a loan or reduce their profit figures in order to pay less corporate tax. For this reason, there is a need for financial regulation. The second reason is that of comparability. Supposing the managers could be relied upon to provide accounting information on items and transactions of interest to other participant groups. What is the best or right way in which the

Case Study Analysis

2437 words - 10 pages considered. Another management accounting method is the differential costing. With the help of this, the management can take proper decisions about selecting the best course of action from the various alternatives. ( Hoque, 2012). With the help of the standard costing, the company can set a standard of performance, in which a measure of actual performance; and a measure of the difference, or variance, between the standard and the actual is done

Accounting

5996 words - 24 pages primarily oriented toward the future. While some management accounting information is historical, the purpose of management accounting information is to facilitate current and future decision making that is in the best interests of the company and that is consistent with the company’s mission. Financial accounting information, while also used for current and future decision making, is generally more historical in nature than is management accounting

Disclosure Analysis

821 words - 4 pages calculated to be sure the method used is not the reason for the past negative numbers. Another possibility is to order fewer products to have fewer markdowns. The numbers are not beyond repair. With some effort, work, and time, the numbers can improve. References Best Buy (2011). Annual report. Retrieved February 5, 2012 from http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=irol-reportsannual Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2007). Intermediate accounting (12th ed.). Retrieved from University of Phoenix eBooks collection database.

The Nature And Purpose Of Financial Accounting

4644 words - 19 pages QUESTIONS 1. a. False. Bookkeeping, the preservation of systematic records, is only one aspect of accounting. Accounting also involves structuring the information so that it can be used to evaluate the performance of the company and make decisions about the future. b. True. Accounting is designed around the tabulation of numerical information. Also, accounting data relate primarily to a company’s financial activities; information about

Management Accounting

2798 words - 12 pages manufactures household appliances and has the biggest portion of market share in China. Haier has best quality and after-sale support and service in my country. Chinese customers would like buy household appliances from Haier, although they are the most expensive among homemade household appliances. This example proves that customers always focus on the quality of goods. They would love to choose good quality staff, even if they have to spend more

Icaict515A Assessment

1744 words - 7 pages the best IT solution with new accounting software solution to be used for their business process. * Provide them a training session the new accounting software solution. * Test the system to verify accuracy. * Provide them a friendly-interface. Constraints * The folder is becoming bulky, and the details of several athletes were lost when several pages were missing. Functional requirements * They give a description of

Principles of Effective Management

586 words - 3 pages cost from revenue. Accounting Profit = Revenue – Cost Accounting profit is not a very good way to find out the actual profit because it didn’t include the opportunity cost in it. ii. Economic Profit Economic profit is much better measurement of profit then accounting profit. Because it just not includes the cost to generate revenue but it also includes the opportunity cost. Opportunity cost of an activity (or goods) is equal to the best

Accounting Info System

552 words - 3 pages Chapter 1 ACCY 231 Spring Session 1. A set of two or more interrelated components that interact to achieve a goal is: a) A system b) An accounting information system c) Data d) Mandatory information 2. Facts that are collected, recorded, stored and processed by an information system a) Information b) Data c) Systems d) Mandatory information 3. Information is a) What happens when the data exceeds the amount the human mind can

Related Essays

Accounting Cycle Essay

668 words - 3 pages 15 The Work of Management • • • • 16 Planning Planning Organizing and directing Controlling Decision-making • Deciding on objectives and how to attain them • In accounting: – Constructing budgets 17 18 3 Introduction to Accounting Organizing and Directing Controlling • Organizing: deciding how best to carry out established plans and objectives • Directing: overseeing daily activities and keeping

Accounting And Finance Essay

1739 words - 7 pages | |d. |all are correct | 3. Which of the following descriptions best describes accounting? |a. |records economic data but does not communicate the data to users according to any specific rules | |b. |is an information system that provides reports to users

Annual Report

3560 words - 15 pages and may be secured by a fixed or floating charge. – options (equity): • instruments which gives the holder the right to buy or sell a number of shares or debentures of a company by a specified date at a stipulated price. Research School of Accounting and Business Information Systems 16 4. Administering a company • Directors manage the company on behalf of the members • Certain registers and records must be kept: – Registers of members, option

Management Accounting Essay

1153 words - 5 pages companies activity it will generate accurate accounting information, It will help manager make right decision and useful for organizational behavior and human behavior in organization. Decision making divided into two, long-term decision and short-term decision. Long-term decision was made by manager can useful for one year or more. Example for long term decision are buy or rent a machine, buy machine with cash or credit, etc. short-term decision was