MBA-FPX5014_Assessment1-2.docx - Assessment 1 Financial Condition Analysis Kerstan Camacho Capella University MBA-FPX5014 Assessment 1 September 5 2019

MBA-FPX5014_Assessment1-2.docx - Assessment 1 Financial...

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Assessment 1 Financial Condition Analysis Kerstan Camacho Capella University MBA-FPX5014 Assessment 1 September 5, 2019 1
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Assessment 1 Executive Summary This business report will analyze the financial health of Best Buy, which is being considered as a merger possibility for PacificCoast Technology. The past three years of financial statements (2016-2018) will be used to determine the financial health of Best Buy and to get a broader picture of the financial situation Best Buy is in that would enable them to merge with PacificCoast Technology. By analyzing this information, financial ratios and other pertinent financial information can be discovered that will indicate whether or not the merger is a wise decision for PacificCoast Technology. Best Buy’s financial statements indicate the company assets are strong. They also indicated that Best Buy has the ability to easily liquidate assets to pay off debts. However, since it is a chain retail company they are heavily reliant on their inventory as a big part of their overall assets. The overall recommendation would be that PacificCoast Technology definitely consider the liabilities associated with this company, but in the end this type of organization would be ideal for a company like PacificCoast to take their products to another level in the market. 2
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Assessment 1 Company Background Most consumers are familiar with Best Buy Co. Inc. It is a very recognizable store chain that sells electronics and home appliances in the United States. It was started in 1966 and is dominant in the technology retail sales market with over one thousand retail stores across the US, Canada, and Mexico. It is a publicly traded company. Over the years as technology has evolved and even become obsolete in some areas, Best Buy has managed to sustain its market position. With competitors like Amazon, it is hard to believe that Best Buy can still thrive in this market. However, according to sources, revenue figures have outperformed Wall Street’s expectations. Best Buy’s stock price rose more than 50 percent in 2017 alone (Roose, 2017). Company Financial Analysis In order to properly assess the financial health of Best Buy Co., Inc. It is necessary to look at their 2018 fiscal financial statements. This will help produce the ratios needed to determine their financial position and whether or not it has the ability to achieve PacificCoast Technology’s plans for the future.
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