BJRI Accounting Analysis

BJ’s Financial Statements

BJ Annual Report 2010

Risk Analysis:

  • Receivables Turnover: 22.9 ~ Relatively POOR as compared to industry average. Collects its debts an average of 16 times.  May reflect poor credit terms and collection policies.
  • Inventory Turnover: 67.96 ~ Relatively GOOD as compared to industry average.  Represents strong marketing and supply chain management.
  • Current Ratio: 1.29 to 1 ~ MODERATE, more or less in line with industry average.  Represents an ability to more than pay-off short-term debt.
  • Acid Test: ~0.91 to 1 ~ MODERATE, more or less in line with industry average.  From a conservative perspective, may not be able to easily meet all current debt obligations.
  • Debt to Equity: 49.43% ~ Relatively GOOD as compared to industry average. Represents a capacity to fulfill long-term debt obligations.

Profit Analysis:

  • Gross Profit: 54.14% ~ Relatively GOOD as compared to industry average. Reflects a significant return above cost of goods sold.
  • Return on Assets: 5.71% ~ Relatively POOR as compared to industry average. Reflects a low return and asset investment.
  • Profit Margin: 4.51% ~ Relatively POOR as compared to industry average. Reflects a smallish income per dollar sold.
  • Asset Turnover: 1.27 ~ Relatively POOR as compared to industry average. Reflects low sales volume in relation to investment in assets.
  • Return on Equity: 8.57% ~ Relatively POOR as compared to industry average. Reflects low income earned for each dollar invested in stockholders’ equity.
  • Price to Earnings Ratios: 44.29 ~ Relatively GOOD as compared to industry average. Indicates high expectations by investors for increased earnings growth.

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