siness. The disaggeration of return on common equity ratio provides us with further insight into Toys R Us ability to produce significant returns to their shareholders. This ratio has been increasing steadily since 1999, and has confirmed our assumption that Toys R Us is once again producing significant returns to their investors. Market MeasuresJan-01Jan-00Jan-99Jan-98Jan-97Industry Price to Earnings8.8812.56-33.8818.4919.4N/APrice to Book0.970.941.172.042.08N/ADividend Yield00000N/AEarnings Yield11.277.96-2.955.415.15N/ATotal Investment Return16.59-15.5-46.125.2337.36N/AIn conclusion to our financial analysis of Toys R Us we would not currently recommend investing in this company. Toys R Us is currently going through a transition phase, where they are changing management, opening and closing stores, and trying to reduce their overall debt. Although the company is currently going through hard times they have made significant strides to increase their business. In 1999 Toys R Us announced a strategic initiatives to reposition it’s worldwide business. The cost to implement these initiatives, as well as other charges resulted in a total charge of $294 million to close and/or downsize stores, distribution centers and administrative functions. If an investor is currently long in Toys R Us we would not tell them to sell, but rather to hold the security because overall business is starting to look better. Within the next 3-5 years Toys R Us will once again be the industry leader. ...
