Skip to main content
  1. News
  2. Business & Finance
  3. Industry

Radio Shack Woes

See also

Radio Shack still continues to struggle. Since the wave of online shopping, retail stores have struggled to maintain their seasonal sales. The internet is flooded with ‘how to’ videos and step-by-step instruction that the need for the wait in at a retail store to ask questions has declined. Radio Shack’s sales decreased .83 billion from 2012 to 2013. Radio Shack employees are well trained with every detail of what they sell. It is really a sad time that Radio Shack will decline to $0.97 a share as of 7:58 pm as of today, 6/27/2014.

Radio Shack serves a purpose of providing products when the customer needs the product rather than waiting for an item to ship. Radio Shack offers a warranty to protect the investment of the item purchased. The warrantee has been controversial because it only protects the amount invested rather than protects against failures and defects. Some people prefer to know that their investment amount is protected and they can get another item if their item is defective. It depends on preference. The online purchases are harder to return and most of the time the online stores do not offer the warrantee.

Another problem that Radio Shack faces is their net income has been in negative (red) for two years. They do not have enough cash flow to continue into 2014-2105. Their net income was -392 million in 2013. Another problem is shareholder’s equity. Investors are hit hard with the decline of Radio Shack. The shareholder’s equity went from 598 million to 206 million from 2012 to 2013. The net financing cash flow has plummeted. However, net operating cash flow went from negative to positive from 2012 to 2013. So, the investors might have suffered but they are flowing the cash back into Radio Shack to give them enough money to operate and try to stay in business.

The employees have served the public with quality service for years. Radio Shack is trying to stay in business, the shareholders need to hang on and perhaps another company will buy-out Radio Shack before it crumbles.

http://www.marketwatch.com/investing/stock/RSH/analystestimates

Advertisement