Managerial Finance Project Toys R - 1497 Words

Managerial Finance - 1 - Managerial Finance Project Toys R in Brazil Managerial Finance - 2 - Summary My paper term paper is 8 - page for my managerial finance class that analyzes the prospects of Toys R for international expansion into Brazil . The analysis consists of financial analysis of the company and en vironment analysis of the country. It relies on eight external sources presented in APA format. Body of the paper Introduction Toys R Us Inc., is a leading toy and baby products retail company that operates in a number of countries all over the world. St arted as a baby furniture store in 1948, the company has grown over the years into an international giant that runs 870 stores selling toys and baby goods in the†¦show more content†¦In 2011 the company formed a joint venture with Li Fung to cater to Southeast Asia and Greater China. Toys R went public in 1978 and operated as a public company until 2005 under this Managerial Finance - 3 - name, when it was taken over by an investment group, which allotted 1 share in the new entity for each share in the earl ier company (Toysrusinc.com, 2015) . Toys R market share peaked in 2011, when its sales touched $8,317 M giving it a market share of 19%. The market share of Toys R in the US has dipped in 2013 to its 2009 level of around 17.8% (Nasdaq, n.d.) Evaluation of the Company’s Financial Stability The company has a good short - term liquidity position, but it is over leveraged. The equity has become negative and the company has been making losses in the last two years. Obviously, the company is not in a position to g enerate additional cash required for investing in foreign operations either through internal generation or by raising external funds. Consequently, it is suggested that the company should look at foreign expansion w ith minimum capital investment by transfe rring essential assets that can be spared from the parent company. The balance of the capital requirement should be met through local long term loans. Key Financial Figures Relevant financial figures of the company were obtained from the published financi al statements and are shown in Appendix