Barnes and Noble's decision of entering the E - commerce

Abstract

E - Commerce is a fast moving trend throughout the world. The upwards trend in the usage of online facilities at the time of purchasing is not showing any downward movement so far. This is the case from past few years. The dot com world has captured a big chunk of the global market. No matter its developing or developed part of the world. Use of internet for the purchasing things from various sectors of the market is very common all over the planet. Ratio analysis is used by the management as a tool for improving and understanding the trends of these financial movements. These ratios can be used as key used as the key indicator for the management of the financial performance of the organization. Managers can make good use of these trends for taking decisions which will be useful for the organizational profitability. Ratios basically pinpoint the issues which are raised time to time. Research is considering six years on the whole. The first of years selected in the research is from 1995 to 1997 and the second set is from 2010 to 2012. Both the sets are selected in accordance to the need of the study. Researcher is considering six ratios on the whole. Two ratios from each of the three major categories of ratios are being calculated. Researcher is calculating gross profit margin and Return on Asset as profitability ratios. Later on research will be calculating current and quick ratio for illustrating how liquid the organization had been in the considered years. In the end, the researcher will be calculating debt ratio and equity ratio for illustrating leverage of the organization. This study categorically supports the decision of Barnes and Noble of entering the e - commerce. The financial analysis done has provided solid evidence for the fact. It can be concluded that e - commerce has become a substantial part of the global business. It is no more an extra facility for the customers. In spite of that, it is basically a mandatory part of any business. In the book retailing industry, trend of buying online has become very common and Barnes and Noble are taking good advantage of this ground reality.

Abstractii

Introduction1

E - commerce A Global Trend2

Book Retailing Industry3

Background of Barnes and Noble5

Financial Analysis7

Profitability Ratios8

Liquidity Ratios9

Leverage Ratios11

Conclusion12

Bibliography15

Barnes and Noble's decision of entering the E - commerce

Introduction

E - Commerce is a fast moving trend throughout the world. The upwards trend in the usage of online facilities at the time of purchasing is not showing any downward movement so far. This is the case from past few years. The dot com world has captured a big chunk of the global market. No matter its developing or developed part of the world. Use of internet for the purchasing things from various sectors of the market is very common all over the planet.

In United stated each year increase, in online books selling is recorded almost 3 ...