Identify & reviewing the company's investor relations information Essay

Identify & reviewing the companys investor relations information - Essay ExampleIn sum, bring in profit declined by 3.13%. This can be attributed to a significant increase in operating expense from $46.875 in 2010 to $47.373 in 2011 while increase in sales was provided moderate from $49.243 in 2010 to $49.747 in 2011. The profitability proportionality of the company is not that very good. Return on assets (Net income/average total assets, 1,427.00/17,849.00) is only 7.9 %. It meant that the company use a lot of resources to yield returns. Return on equity ratio(net income/average stockholders equity, 1,427.00/6,602) or Equity per share (EPS) however is moderately demonstrable with 21.6 % return to investors. But while the company is giving modest returns, its stability in terms of debt to equity (total liability/total stockholders equity) ratio is very disturbing. Its debt is more than 270.35% (17,849/6,602) than its equity which means that the company is heavily indebted. This i s being supported by its liquidity ratio which has period ratio (Current asset/current liability) of .47 which means that Best Buy cannot settle its obligations right away and has to source out more than half of its obligations.The shortcoming of Best Buy is however accept by the company and vowed to address them. In its press release, it enumerated as one of its action plans to improve business performance is its reduction in its operating salute which caused the the companys lesser profitability. It vowed to reduced cost by $800 million dollars and along with this is the closure of 50 big box stores in 2013 to be replaced by 100 Best Buy Mobile small format stand-alone stores in fiscal 2013 (Epstein, 2012). It also plans to grow its online presence revenue by 15% recognizing the growing profitability in ecommerce.If I am an investor, I will not put my money in Best Buy because I am worried with the companys long-term stability. It just owes a lot