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Barnes & Noble

Barnes & Noble. Financial Analysis By: Heather Deren. www.bookriot.com. Barnes & Noble. Charles Barnes opened a used bookstore in 1873 in Illinois By 1993 it became known as Barnes & Noble, became public, and expanded throughout the U.S.

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Barnes & Noble

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  1. Barnes & Noble Financial Analysis By: Heather Deren www.bookriot.com

  2. Barnes & Noble • Charles Barnes opened a used bookstore in 1873 in Illinois • By 1993 it became known as Barnes & Noble, became public, and expanded throughout the U.S. • Currently sells books, magazines, E-Readers (Nooks), and owns 685 private college bookstores. Retrieved from Hoovers www.mhpbooks.com

  3. Barnes & Noble • Barnes & Noble has been struggling in the tablet market against Amazon • When Nook was first introduced, the product looked strong, but soon led to financial losses. • In 2013, decided to stop making Nook Color devices (but will sell other black and white E-Readers) • Will be downsizing number of stores from 675 in 2013 to ~500 in 2023 Retrieved from Hoovers

  4. Barnes & Noble • Struggling from the cheap book market available to customers on Amazon • eBooks are cheaper to buy than print books- Amazon is also dominating this market with Kindle books • Their store are still making a profit, but it is being off set by the nook which is losing money • The print market is shrinking- eBooks make up 22% of sales Trachtenberg, 2013

  5. Current Ratio * Note the industry average is based on the three companies chosen. Retrieved from Mergent Online

  6. Debt to Equity Ratio Retrieved from Mergent Online

  7. Accounts Receivable Turnover Ratio Retrieved from Mergent Online

  8. Return on Equity Retrieved from Mergent Online

  9. Return on Assets Retrieved from Mergent Online

  10. Net Profit Margin Percentage Apple’s Net Profit Margin Percentage for 2012 was 21.67 % Retrieved from Mergent Online

  11. Management Discussion & Analysis • Key risks to firm: • The falling economic system • Increased competition from the internet • Competition from the expanding digital market Retrieved from Barnes and Noble Annual Report

  12. Management Discussion & Analysis • Outlook for the future: • Utilize their strong brand name to attract customers • Drive sales through content for NOOK readers and other devices with NOOK app • Continue to grow in sales from Gift & Toys section • Continue to grow with their campus bookstores Retrieved from Barnes and Noble Annual Report

  13. Personal Position • I would currently not invest in Barnes and Noble • They might improve their ROE and ROA in the future • They are a seasonal company

  14. References Barnes and Noble Annual Report 2013. (n.d.). Annual Reports. Retrieved November 24, 2013, from http://www.barnesandnobleinc.com/for_investors/annual_reports/201 3_bn_annual_report.pdf Hoover’s, Inc. (2013).Barnes and Noble, Inc.: Company record: Full overview. Retrieved from Hoover’s database. Mergent. (2013). Barnes and Noble, Inc. 2013 company financials as reported [Financial data]. Available from MergentOnline Trachtenberg, J. A. (2013, Jan 28). B&N aims to whittle its stores for years. Wall Street Journal (Online). Retrieved from http://search.proquest.com/docview/12819838 71?accountid=28006

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