INTRODUCTION
A financial statement analysis is basically doing homework on a company's financial statements, analyzing everything down to the footnotes. Analysts look at these statements to determine whether or not to invest in a company. They look at previous performance to determine future performance. Financial statement analysis allows you to compare more than two companies at a time. They compare different ratios as well as looking at the annual report. Included in the annual report are information about the company, letter to shareholders, the auditor's report and results, financial statements and any other information on the company.
Within this analysis, I will look at Tiffany and Co. along with Zales Corp to analyze their annual report which will cover ratios, the financial statements and the notes to these statements for both 2002 and 2003.
BACKGROUND
Tiffany and Co. was founded in 1837 and is a renowned jeweler and specialty retailer who specialize in jewelry, stationery, fragrance and accessories. They have 4 channels of distribution which are their means of collecting revenues. They are US Retail, International Retail, Direct Marketing and Specialty Retail. Tiffany has over 141 stores in the US and stores all over the world. The company has four key growth strategies. They plan to expand its channels of distribution, to increase sales in existing stores, to enhance customer awareness and appreciation and to provide outstanding customer service. The company has invested in Temple St. Clair a privately held company that designs and sells jewelry, Della.com an online provider for wedding gift registry, Aber diamond by purchasing their common stock and the company has recently invest ...