Question: Tracking Credit Risk Measures: Toys "R" Us (Hard) Toys "R" Us, Inc., is the worlds 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 films stock piice 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 firms balance sheets and income statements for fiscal years ending January of 1997 to 2000 are given in Exhibit 20.1, along with share price and shares outstanding information. Track the profitability of the firm over the years and also its creditworthiness, as indicated by relevent ratios and Z-scores.
