BWLD Accounting Analysis

Buffalo Wild Wings Financial Statements

Buffalo Wild Wings Inc Annual Report

Risk Analysis:

  • Receivable turnover: 59.91 times per year – Relatively MODERATE when compared to the other companies.  This company shows that it is keeping up con collecting its debt from their customers.
  • Inventory turnover :  41.24 times per year – Relatively MODERATE when compared to the other companies.  The company is able to sell its entire inventory 8.85 days per year. This ratio indicates that the company is able effectively manage its investment in inventory.
  • Current ratio: 1.7 to 1 – Relatively GOOD when compared to the other companies. This ratio indicates that the company is able to cover all liabilities at the current time.
  • Acid-test ratio: 0.93 to 1 – Compared to other companies, one would say this company is relatively GOOD; however, this ratio indicates that the company is not able to cover all liabilities with its current quick assets. Therefore, this company has a low liquidity to cover its current assets with its’ quick assets.
  • Debt to equity ratio: 48.1% – Relatively GOOD when compared to the other companies. This percentage indicates that the company is able to maintain debt low; thus having a low risk to bankruptcy.

Profit Analysis:

  • Gross profit: 28.82% – Relatively POOR when compared to the other companies.  This percentage indicates that the company success to manage is inventory is less than the other companies. In fact, due to the competition in this type of restaurant, the company is unable to “markup” its food prices.
  • Return on assets :  11.14% – Relatively GOOD when compared to the other companies. Reflects a moderate return on asset investment.
  • Profit margin: 6.92% – Relatively GOOD when compared to the other companies. This shows that the company is able to pursue a high profit of margin by its exceptional products and premium pricing.
  • Asset Turnover: 1.61 times – Relatively GOOD when compared to the other companies. This shows that the company is able to also pursue high sales volumes by charging low prices.
  • Return on equity: 16.46% – Relatively MODERATE when compared to the other companies. This percentage indicates that the company is doing a decent job on managing its employing resources and is able to obtain $0.16 for every $1.00 invested.
  • Price-earnings ratio: 20.78 – Relatively BAD when compared to the other companies in the same field. This is relatively low since there is a lot of competition in providing a similar restaurant atmosphere. Also, there is a lot of competition in the chicken wing competition.
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