Toys R Us, Inc., is the worlds largest toy retailer, with sales of nearly $12 billion in

Toys €œR€ Us, Inc., is the world€™s largest toy retailer, with sales of nearly $12 billion in 1999. It has been challenged in recent years, particularly in e-commerce, losing market share from 20.2 percent in 1993 to 16.8 percent in 1999. The firm€™s stock price was down to $11 in early 2000 from a high of $36 in 1998. Management had begun, however, to take strategic initiatives to return the firm to the leading position it once enjoyed.
The firm€™s balance sheets and income statements for fiscal years ending January of 1997 to 2000 are given in Exhibit 19.1, along with share price and shares outstanding information. Track the profitability of the firm over the years and also its credit worthiness, as indicated by relevant ratios and Z-scores

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Income 5tatements (in milions of dolars) 1997 1998 999 2000 Net sales Cost of safes Gross profit Seling, advertisieg, generas, and administratite expeses Deprecatin, amortization, and asset write offs Restructuring and other charges Total operating expenses Operating loss) incame Interest experse nterest and other income Earnings before income taxes income taxes Net earnings (lass) 9,932 S11,038 S11.170 $11,862 6.892 0 8.19t 8,321 3,040 3,3282,99 3,54i 2,743 278 2,020 2,443 60294 (13) 2,231 253 2,286 2.484 2,9923,021 520 754 102 673 246 8 161 5427 490 132 279