Group 11 Electronics Sales

Esther Bayazitoglu
Icciyomara Gomez
Resha Taylor

"Leading retailer of brand name and private

label products, including personal computers,
notebook computers, consumer electronics,
computer-related accessories, technology
supplies and industrial products."

Headquartered in Port
Washington, NY
Highly focused on online sales
Inventory valuation: FIFO (except
in Europe)
Employees: 5,500 as of 2011
Market capital: $557.28M

"Leading national retailer of innovative technology

products and services, as well as products related to
personal and home technology and power supply needs.
RadioShack offers consumer products and services from
leading national brands, exclusive private brands and
major wireless carriers, all within a comfortable and
convenient shopping environment"

Headquartered in Fort Worth, TX

Highly focused on in-store sales
Inventory valuation: FIFO
Employees: 34,000 as of 2011
Market capital: $1.62 B

Today HH Gregg is one of the

nations leading and fastest growing
retailers of home appliances and
consumer
electronics.
Headquartered
in Indianapolis,
Indiana
A specialty retailer of home appliances, TVs,
computers, consumer electronics, mattresses
and related service.
Inventory valuation: Average Cost
Employees: 5,600 as of 2011
Market capital: $251.27M

Common Size Analysis - Assets

ASSETS

SYSTEMAX
200 201 2011
9
0

RADIOSHACK
200 201 201
9
0
1

HHGREGG
200 201 2011
9
0

Cash

7.14

10.3 10.93 37.3

0
9

26.1
7

27.2
0

6.14

26.0
5

13.2
4

Accounts
Receivable

29.6
1

30.9 30.23 13.2

1
8

17.3
5

16.5
8

4.10

5.07

5.22

Inventories

44.7
7

41.4 41.84 27.6

2
0

33.2
7

34.2
2

40.4
2

33.2
6

38.5
7

Other
current
assets

3.27

2.96

4.71

4.97

5.34

1.21

1.41

2.01

Total
current
assets

84.7
8

85.5 86.12 82.9

9
7

81.7
6

83.3
4

53.1
2

66.8
0

60.0
8

PPE (net)

8.03

8.25

7.95

11.6
2

12.6
1

12.4
2

23.8
5

21.9
5

29.6
2

Goodwill/
intangibles

5.89

5.53

5.38

1.60

1.89

1.70

3.12

Common Size Analysis Liabilities and

Equity
RADIOSHACK
SYSTEMAX
HHGREGG
Liabilities
and Equity

200
9

201
0

200
9

201
0

201
1

200
9

201
0

2011

Accounts
Payable

42.4
0

42.1 37.83 10.8

7
2

12.5
2

16.0
1

17.7
7

24.6
6

17.1
7

Other
current

11.7
7

9.47

8.14

16.1
2

15.0
6

14.5
0

13.5
0

10.7
6

12.9
1

Current
portion LT
Debt

.30

.29

14.1
6

.26

.15

Total Current
liabilities

54.1
7

41.7
4

30.5
1

31.5
3

35.5
7

30.0
8

Long term
debt

.83

.80

25.8
4

15.2
5

30.8
3

26.1
7

14.4
3

Other
noncurrent

1.19

1.46

1.88

4.06

4.28

4.03

6.58

8.18

12.3
2

Total
Liabilities

55.3
6

54.2 48.94 56.8

3
5

61.2
7

65.3
7

64.2
8

58.1
8

42.4
0

Total Equity

44.6

45.7 51.06 43.1

38.7

34.6

35.7

41.8

57.6

2011

51.9 46.25 26.9

4
4

Common Size Analysis Income

Statement
RADIOSHACK
SYSTEMAX
HHGREGG
200
9

201
0

2011

200
9

201
0

201
1

200
9

201
0

2011

Net Sales

100
%

100
%

100%

100
%

100
%

100
%

100
%

100
%

100
%

Cost of sales

85.4
6

86.1 85.59 54.0

9
2

55.1
4

58.6
4

68.8
5

69.5
7

69.6
9

Gross Profit

14.5
4

13.8 14.41 45.9

1
8

44.8
6

41.3
6

31.1
5

30.4
3

30.3
1

Selling,
general, and
admin.
expenses

12.2
2

11.9 12.23 37.2

0
5

36.6
5

37.8
2

26.1
7

25.9
5

26.1
6

Operating
income

2.32

1.91

2.19

8.73

8.21

3.54

4.99

4.48

4.15

Other items

.86

.73

.71

2.14

2.26

2.38

2.38

1.94

1.83

Net Income

1.46

1.19

1.48

5.03

4.83

1.65

2.61

2.55

2.32

Short Term Assets and Related Information

A/R Turnover

Days Sales in Receivables

120.00
100.00
80.00
60.00
40.00
20.00
0.00

120.00
100.00
80.00
60.00
40.00
20.00
0.00

2009

2010

2011

Systemax RadioShack HHGregg

2009

2010

2011

Inventory Turnover
Inventory
Valuation

10.00
8.00

Systemax

FIFO

6.00

RadioShack

FIFO

2.00

HHGregg

Average Cost

0.00

4.00

Systemax RadioShack HHGregg

2009

2010

2011

Store Sales
Sales per Sq. Ft
4500
4000
3500
3000
2500
2000
1500
1000
500
0

Systemax

Radio Shack

HH Gregg

2009
System
ax

2010
System
ax

2011
System
ax

2009
Radio
Shack

2010
Radio
Shack

2011
Radio
Shack

2009
HH
Gregg

2010
HH
Gregg

2011
HH
Gregg

Ope
n

27

754

662

20

22

43

Clos
ed

216

134

536

Total

34

41

42

656
3

7183

730
9

110

131

173

Profitability
Gross Profit Margin
50%
40%
30%
20%
10%
0%

Return on Assets
15%

2009
2010
2011

2009
2010
2011

10%
5%
0%

Systemax Radio Shack HH Gregg

Net Income/ Net Sales

Return on Equity

2009
2010
2011

6.00%
4.00%
2.00%
0.00%

40%

2009
2010
2011

30%
20%
10%
0%

Systemax

Radio Shack

HH Gregg

Return on Investment
0.2
0.1
0

Systemax

Radio Shack
2009

2010

2011

HH Gregg

Liquidity
4
3
2
1
0

Current Ratio

Systemax Radio Shack HH Gregg

200
9
201
0
201
1

2.5
2
1.5
1
0.5
0

Quick Ratio
200
9
201
0
Systemax Radio Shack HH Gregg

Leverage Ratios
Debt Equity Ratio

Debt Ratio
2
1
0

Systemax

Radio Shack

2009

2010

HH Greggs

2009

2010

2011

Times Interest Ratio

100
50
0

Systemax

Radio Shack

2009

2010

HH Greggs

2011

2011

Investor Analysis
Operating Cash Flow/Cash Dividends

2009

2010

Degree of Financial Leverage

Systemax

2011

Radio Shack HH Greggs

2009

2010

2011

Price Earnings Ratio

30
20
10
0

Systemax

Radio Shack
2009

2010

2011

HH Greggs

Summary
Systemax
Excellent Inventory Turnover
Significantly higher Cost of Sales
The lowest Net Income/Net sales
Low dividends

Radio Shack
Lowest Cost of Sales
Low Inventory Turnover
High Net Income/ Net Sales in previous years
Even dividend payout

HH Gregg
High Cost of Sales relative to Net Sales
High Inventory Turnover
Even Net Income/ Net sales
Doesnt pay dividends

Post Period Analysis

Stock Prices
18
16
14
12
10
8
6
4
2
0
41984

41710

41802
Systemax

RadioShack

41894
HH Gregg

41985