Coinstar Inc: The Company Analysis

Subject: Company Analysis
Pages: 2
Words: 548
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Coinstar Inc (CSTR: NASDAQ GS) is an American company that was founded in 1991. This company’s headquarters are located in Bellevue, Washington. The firm’s original focus was the conversion of loose change into paper currency, donations of gift cards via coin counter kiosks at a fee except for the gift cards where they do not charge anything. The company has more than 60,000 locations including a variety of services in the U.S., UK, Ireland, Canada, Puerto Rico and Mexico. The founder of this firm that serves the areas of North America & Europe is Dan Gerrity. Coinstar has become a multinational provider of services for the front end of retail stores. The company will be coming out with additional services, including the ability to deposit coins directly into a personal bank account (Bloomberg Businessweek 2011).

The firm is listed on NASDAQ GS Stock exchange with its ticker symbol in the stock market being CSTR. This is the symbol they use to identify themselves in the stock market. The board of directors of Coinstar authorized a share repurchase program on July 21, 2011. Under the program, the firm was to repurchase up to $250 million worth of its shares. The firm also operates self- service DVD kiosks that enable its clients to rent or to purchase a movie. The users from the U.S. and UK have the option of donating their change to the selected charity, as one of the services that this company provides. Through this initiative, Coinstar was able to raise more than $20 million for charities (Bloomberg Businessweek 2011).

Coinstar Inc had a cash equivalent of USD 19.4 million as of Dec 31 2009, and in the following year, the cash and its equivalents increased to USD 71.3 million. This contributed to the total liability and equity of USD 1,222.8M as of Dec 2009 and a slight increase was reported in the following fiscal year because it recorded total liabilities and equity amounting to USD 1,282.7 million. For many years, Coinstar, inc. has seen its bottom line shrink from USD 53.6 million to USD 51.0 million, even though there was an increase in revenue of 0.4 billion. An increase in the income tax contributed to the falling bottom line even after the firm recorded an increase in revenue. They had revenue for the full year 2010 of USD 1.4 billion, which was 25.5% above the prior year’s results (Bloomberg Businessweek 1).

Although the debt as a percentage of total capital decreased, over the last fiscal year to 46.88% it is still offering its services to customers as expected. Account Receivable is among the industry’s worst with 5.75 days worth of sales outstanding. This implied that revenues are not being collected in an efficient manner. The total current assets of Coinstar Inc. as of 31 Dec 2009 were USD 440.1 million and in the following fiscal year, the firm reported an increase in the total current asset by USD 48.3 million, which amounted to USD 488.4 million in total. The largest current assets of the company in 2009 and in 2011 financial periods were other current assets for the year 2009 that amounted to USD $159.3 million. In 2010, the largest current assets were the inventory that was worth USD $140.3 million (Kimmel Kieso and Weygandt 79).

Works Cited

Bloomberg BusinessWeek. Coinstar, Inc. 2011. Web.

Kimmel, Paul, Kieso, Donald and Weygandt, Jerry. Financial accounting: Tools for Decision Making (6th ed.). Hoboken, NJ: John Wiley & Sons. 2008. Print.