This will attract more customers leading to more profits in the organization. In addition, this will create customer loyalty and the company will have a competitive advantage over its rival.
In conclusion, it is true that Brocade is a successful company. This is due to its increased realization of profits over the last few years. This is evidence from its financial statements including income statements, balance sheet as well as cash flow. From these financial statements, it is a clear indication that the company will move to greater heights in the near future.
By considering the above recommendations, the company can be able to overcome financial threats such as global competition, recession and higher interest. This will see the company realize significant profits in the near future.
Brocade announces Q4 and fiscal 2002 financial results. (2002, Nov 21). P Newswire. etrieved from http://search.proquest.com/docview/448912320?accountid=35812
Brocade communications systems. (2009). The…… [Read More]
Financial Analysis of Wal Mart
Financial Analysis of Wal-Mart
Wal-Mart Stores Inc. (WMT) is the largest global retail and chain stores operating in various formats. The company operates more than 8000 stores globally across its business segments, which include electronics, groceries, apparel, and small appliances. Although, Wal-Mart operates a global business, however, more than half of the company businesses are located in the United States. Wal-Mart also operates its global businesses through subsidiaries in the United Kingdom, Canada, Japan, Brazil, Argentina, and China. However, majority of the company subsidiaries are located in the Central & South America and Chile. For more than 50 years, Wal-Mart has been implementing the low price model to make difference around the world. Over the past ten years, Wal-Mart has increased the total revenue and net income. The strategy that Wal-Mart uses to drive up its profitability over the years is by buying…… [Read More]
The company's promotional literature emphasizes the synergistic effects of this corporate structure: "IAG combines the two leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their individual brands and current operations. The airlines' customers benefit from a larger combined network for both passengers and cargo and a greater ability to invest in new products and services through improved financial robustness" (About IAG, 2012, para. 2). These changes in the corporate structure are consistent with larger trends in the airline industry which has experienced increasing consolidation among major carriers notwithstanding some regulatory constraints, and are also congruent with IAG's stated mission to "play its full role in future industry consolidation both on a regional and global scale" (About IAG, 2012, para. 3).
Market perception of IAG as a whole
Some recent media reports provide some useful insights concerning the standing…… [Read More]
By May 2012, MedAssets long-term debts are approximately $959.94 Million.
Additionally, MedAssets secures loans that carry interest rates. With significant amount of loans that the company has secured and notes that the company has issued, the company faces interest rates risks. To mitigate the effect of risks associated with the fluctuation of the interest rates, the company enters into the series of financial instrument to guide against the risks from the loans agreement and the bond that company has issued in order to raise fund.
Due to the interests rates fluctuation, MedAssets faces the interest rates risks that could jeopardize its business operations. Typically, MedAssets faces interest rates under the borrowing agreement. A loan under the credit agreement carries the interest rates. To safeguard against the fluctuation of the interest rates, the company policy is to manage the interest cost using cost efficient method. The company enters into financial derivative…… [Read More]
UCSD is a health care provider that is considering the purchase of an MRI machine. An MRI is a tube that is surrounded by a giant circular magnet. It is used to scan patients, and has the benefit of being very safe relatively to radiation scanning. The purchase must be aligned, however, with the UCSD goal of providing high quality patient care and alleviating suffering. A significant number of the hospital's patient population eventually needs MRI services. At present UCSD is paying an outside provider for this service. Thus, UCSD is considering purchasing and installing its own MRI machine.
The purpose of an MRI machine is to conduct diagnoses, and these are generally very accurate and the process is safe. The present condition is that MRI diagnoses are important but are typically referred to an outside provider at a cost to UCSD. Critical condition patients are especially at…… [Read More]
Financial Analysis of a Coach Inc
Financial Analysis Case Study: Assessing a Company's Future Financial Health
Financial analysis of a Coach Inc.
Leather industry is a lucrative area of investment that entails manufacturing of products from leather. Coach Inc. is one of the many companies that work along this line of business. Coach Inc. started from manufacturing small leather goods in 1941 and expanded to produce in bulk of variety of products from leather. Among the products it produces to date, include handbags for women, luggage and briefcases, wallets among other accessories. The company came into existence in 1941, on the 34th street of Manhattan, in New York City. It constituted a partnership called the Gail Leather Products, a family owned enterprise. At the time of start, it consisted of six leather workers who participated in the work of making wallets and billfolds by hand. In 1946, Miles and Lillian…… [Read More]
inancial Analysis: Home Depot
Summary of Operations
Income before Taxes
Property, Plant and Requirement
inancial Ratio Analysis and Interpretation
Historical View of inancial Performance
Competitor and Industry Standards Comparison
The relevance of subjecting the financial statements of a company to intensive analysis cannot be overstated. This is more so the case given that the information obtained from such an analysis comes in handy in the determination of a company's financial health as well-being. In this text, I concern myself with the analysis of Home Depot's financial statements in an attempt to not only determine but also assess its financial performance and stability.
Summary of Operations
rom the onset, it is important to note that with regard to net sales, Home Depot showed significant improvement throughout the three years under consideration.…… [Read More]
Indeed, the retailer's current ratio has not exceeded 1.0 in recent times. It is however important to note that given its profitability, it is likely that Wal-Mart converts its inventory into cash at a rate that is much faster than that of its peers in the same industry. For this reason, it is highly unlikely that in the normal course of doing business, the retailer could encounter challenges paying back vendors in the near future.
Stock Price Analysis
In my opinion, Wal-Mart's stock is likely to continue performing relatively well into the future. This is particularly the case given that the company's OE (in relation to that of its peers) has largely been impressive in the past. Active investors are likely to be drawn to this stock given its impressive performance. To further improve the performance of the stock, the management should embrace an extensive growth and expansion strategy that…… [Read More]
Carpetright bills itself as Europe's "leading specialist carpet and floor coverings retailer." The company earns most of its revenue in the United Kingdom (80.1%) with the remainder coming from operations in Ireland, Belgium and the Netherlands. The group opened its first store in 1988 and now has 632 stores and over 3300 employees. This report is going to be a comprehensive analysis of Carpetright's financial situation.
Five Year Summary
Yahoo! Finance (2012) provides data for the past four years. Carpetright has seen volatility in its revenues over this period. In fiscal 2007, the company had revenues of £476 million, and this past year revenues were £471.5, so very little change. The company has added nearly 100 stores in that time, so the average sales per store has declined. The company's sales grew in 2008, fell in 2009, recovered in 2010 and then fell again in 2011 with the…… [Read More]
Rio Tinto is a major mining company in the FTSE 100, specializing in iron ore. The company is geographically diversified. A close competitor is BHP Billiton, and these two firms are compared on the basis of their operations and financial statements. From a financial perspective, both firms are relatively equal. Both firms had strong years in 2008 and 2010, with a weak year in 2009 in between. Rio Tinto's results are better, largely because it benefited from a run-up in commodity prices in late 2010, after BHP's fiscal year had ended.
Rio has demonstrated a commitment to managing its capital structure effectively. The company went deeply into debt in 2007 in order to purchase Alcan, the Canadian aluminium giant. As a result, Rio has spent the past few years trying to pay down debt. Even during the down year in 2009, it was able to do so and…… [Read More]
This is significant, because the increases in these levels are an indication that the management is engaging in responsible financial practices to pay off of their debt obligations. (Finkler, 2010, pp. 558 -- 561)
Review the notes. Do any of them raise cause for concern?
When reviewing the notes, there is nothing unusual that is causing concern about any kind of sudden shifts in the financial strength of the hospital. (Finkler, 2010, pp. 558 -- 561)
What do you think of Major Medical Center's financial status? Explain your analysis
At the moment, Major Medical Center is in a strong financial position. However, between 2011 and 2012 the hospital has been taking steps that have been reducing their underlying financial standing. Evidence of this can be seen by looking no further than the decrease in: the quick, current, debt and debt to equity ratios. As, they have been declining from 2011…… [Read More]
Both these elements have undergone decreases of around - 45% in 2002, due, perhaps, to an increase in financial and operational costs.
Mainly, solvency ratios are aimed to point out towards two important issues. First of all, the company's capacity to pay its debts during a certain period of time. Second of all, the rate at which the company is using the financial leverage or the proportion of debt as a source of finance for the company's actions.
he times interest earned ratio is determined by dividing the earnings before tax and interest (EBI) to the overall value of interest related costs. he IE ratio is important because it shows by what values the company's earnings can vary without affecting the capacity of paying interest rates and covering lending costs. A low IE may be a signal that the company is about to have financial difficulties and encounter…… [Read More]
Part I. Company Overview
Dell Technologies Inc is a computer designer and marketer based in Hopkinton, MA. Dell is the third-largest computer hardware company by global market share. It holds a share of 15.9%, trailing HP (21.8%) and Lenovo (20.4%), but ahead of Apple (7%) and Acer (6.8%) (Dunn,2017).
Dell Technologies was created with the merger of Dell Inc and EMC Corporation. Dell Inc was founded by Michael Dell in 1984 in his dorm room at the University of Texas at Austin. The company's products were an immediate success, and by 1986 it opened a factory in Austin. The company rose to prominence in the industry, and by the time the Internet was born Dell was already a major computer manufacturer; the Internet boom allowed the company to launch into hypergrowth. Dell computers were for many years only available via ordering; there was no in-store distribution. This allowed the company…… [Read More]
Depreciation + Exp
Future Income Tax
Current LT Debt
Other LT Liabilities
L + E
Reitmans was able to improve its profitability in 2005, compared with 2004. The company's gross profit improved to 13.55% from 9.99%; its operating profit improved to 9.7% from 5.98%; and its net profit improved to 7.33% from 4.7%. This shows that the improvement in the company's profitability is largely attributable to the improvement in the top line, with the cost of goods sold being a lower percentage of revenues in 2005 than 2004. hether this is a function of driving down costs with suppliers or increasing prices to consumers cannot be ascertained from…… [Read More]
Overall, at&T is the more profitable of the two companies. That Verizon has the stronger gross margins and at&T the stronger net margins indicates that at&T does a better job of controlling its cost structure than does Verizon.
The telecommunications industry is highly competitive in both the landline and wireless segments. By 2006, wireless spending had match wireline spending. hile this presents significant opportunities for telecommunications, much of that spending comes in the form of cannibalizing, as wireline revenues have been decreasing steady over the past decade, matching the steady increases in wireless spending.
There are four major wireless operators in the U.S. And over 170 regional players (Megna, 2009). Competition is based on coverage area (capital investment), price and customer service. Both firms can be considered industry leaders. As of 2007, at&T had a subscriber base of 65.7 million and wireless revenues of $10.9 billion. Verizon had…… [Read More]
Financial Analysis of Bestwish Limited
Bestwish Limited produces extensive range of quality products such as gift dressing, greetings cards, and plush merchandise of more than 50,000 stocks. The production of different categories of products involve between 2 and 15 processes. The company produces standardized products and custom designed products ordered from customers on contract basis. However, Bestwish Limited is facing challenges to control the costs because of varying production process, reliance on indirect costs and large number of stock keeping units.
Bestwish Limited has just closed the 2010 fiscal year account and the company is finalizing the 2011 budget. Bestwish intends to analyze the 2010 financial statement to present the accurate picture of the company financial performances.
Objective of this report is to analyze 2010 financial statements to assess the viability of Bestwish Limited.
Audit Committee of the Board
Subject: Financial statement Analysis
Date:…… [Read More]
Thus, the Board ultimately had little control over this particular cost, which is how it is found itself in a difficult financial position this year. The general lack of control over the budget is a definite weakness for the Bridgeport Board of Education.
In lieu of financial statements, there were two main resources available to help assess this organization's health. Its budget book was the primary source, as it detailed the Board's financial situation with respect to its inflows and outflows. News items are also helpful. Since the Board is not a public company, it is not required to disclose items of financial significance, but such items may come to light through the local news media.
The organization's approach to creating shareholder value is to spend its money on the programs that deliver on its strategic objectives. These include graduating students at a college-ready level, reducing the dropout rate to…… [Read More]
Financial analysis is a tool that allows third parties to analyze corporate financial statements. One of the main reasons that the Securities and Exchange Commission requires that statements are compiled and presented in a consistent manner is to ensure that third parties will be able to use the statements to compare different companies. These comparisons can, among other things, help with investment decisions. This paper will compare PepsiCo and Coca-Cola Company, the two leading soft drink marketers in the world. PepsiCo is actually the larger of the two companies, because it is more diversified, with its snack food properties. These properties also alter the company's finances, creating certain points of difference between the two companies. This report will cover a number of different forms of financial analysis, arriving at a conclusion about which company has the stronger financial position.
The first set of ratios to be studied…… [Read More]
Financial Analysis of Lehman rother
The history has been full of financial collapses and financial scandals and one of the biggest financial collapses that a company has ever seen was that of Lehman brother. The collapse of a firm as huge as Lehman rother and a firm which has such great experience of over a hundred years lead the world into a shock. It created doubts in the minds of people regarding the condition of other financial institutions. The history of Lehman rother is rich which is further discussed.
The history of Lehman rother dates back to 1844, when a boy named Henry who was a 23-year-old son of a cattle merchant who immigrated to the United States from Germany and he settled in Alabama State of the United States where he opened dry goods store. In 1847, when Henry Lehman's elder brother arrived to Alabama, the firm…… [Read More]
Ford's value in 2007, was 0.01, compared to GM's value of 0.64. Comparatively, GM is using its assets in a much more efficient manner than Ford is.
oth General Motors and Ford have shown specific problems in their operational activity, as this is reflected in the financial ratios that have been analyzed. The most important problem that Ford seems to have was reflected by both the asset management and profitability ratios. Indeed, from our investigation, we were able to determine that not only Ford is not using the assets it has efficiently in order to generate higher revenues and sales for the company, but the values in 2007 were almost error-like small (0.01 in most cases).
At the same time, General Motor's asset management and profitability ratio values were somewhat higher and, generally, showed an ascending trend, but I don't think we can go as far as saying…… [Read More]
Electronic communication has increased the availability and speed at which financial information is made public. Announcements and stock prices are made available in real time. Aggregated and historical information is widely available on information aggregator sites like Yahoo Finance. Annual reports are publicly available, and securities regulators insist that they be made publicly available.
The increased availability of financial information about companies serves to improve both the transparency and liquidity of financial markets. Investors of all types and abilities now have access to the information that they need to make information decisions. That all companies must produce consistent financial statements according to GAAP also helps with the transparency of financial information. ith easy access to this information, investors can become more educated and more confident. Ultimately, this improves investor confidence in the system and liquidity in the market, improving the market's function.
Because publishing this material improves the…… [Read More]
Oracle sells software for database-management and network products, application-development productivity tools, and end-user applications. Its principal product, the Oracle relational database-management system, runs on supercomputers, mainframes, minicomputers, microcomputers, and personal computers. The firm also offers consulting and systems-integration services. Foreign sales make up about 50% of revenue.
Oracle sees the wisdom in managing business data. Oracle also offers business applications for data warehousing, customer relationship management, and supply chain management. The company made an unsolicited bid to acquire PeopleSoft for about $5.1 billion in June 2003. y early 2004 the offer had increased to $9.4 billion, but was later reduced to $7.7 billion to reflect market conditions. The Department of Justice filed antitrust lawsuits in seven states to block the deal, and started hearings on June 7. Peoplesoft's lawsuit against Oracle is scheduled to go to court November 1 in Alameda, California.
Long-Term Debt Ratio (Long-Term Liabilities/Total Assets)…… [Read More]
Threats and vulnerability: A case study of Shoe Carnival, Inc.
Shoe carnival overview
Shoe Carnival Inc. is a publicly traded company that offers a range of footwear products for all categories of customers, men, women, children and sportswear. It also offers casual wear products and other assorted products such as handbags. Its headquarters are situated in Evansville, Indiana and it runs over 300 stores across several states mostly concentrated in South, Midwest, and Southeastern states of the U.S. David ussell, who had sold shoes for over 20 years in the traditional way, founded Shoe Carnival after feeling convicted that that was what he wanted to do. In the year 1978, and with is personal savings and some capital from his in-laws, he opened his first store that he called "Shoe Biz." His main idea was to create a shoe store made shoe-shopping fun. The major difference with ussell's…… [Read More]
The absolute value represented by the working capital is largely irrelevant for comparison between two different firms because of the different sizes of the firms. Current ratio is the better measure to compare between two different firms. Wal-Mart's current ratios for 004-006 were 1.70, 1.69 and 1.6 respectively. Target's current ratio over these three years was inconsistent, and Wal-Mart's declined. Target's was generally the weaker of the two.
Wal-Mart's asset turnover for 004, 005 and 006 respectively was .58, .49 and .39 based on the following calculations:
004: 56,39 / 99,15.5 = .58
005: 81,488 / 11,979.5 = .49
006: 308,945 / 19,170.5 = .39
Target's figures showed improvement over the three years in this area, but the figures are much lower than those of Wal-Mart. Thus, even though Wal-Mart's numbers are declining, they are stronger than Target's.
I would not invest in Target. The evidence presented here indicates that…… [Read More]
Had the organization employed the techniques of activity-based costing, they would have realized the need to change their approach and had started manufacturing small size and fuel efficient engines, as most of the customers were requiring these items. "If Ford [...] had used activity-based costing, they would have realized early on the utter futility of their competitive blitzes of the past few years, which offered new-car buyers spectacular discounts and hefty rewards" (Drucker, 2003).
Unlike absorption costing, marginal costing uses the traditional division into direct, indirect, fixed and variable costs. The accounting method sees that the final marginal cost of a product will be calculated by summing up the direct costs of labor, the direct costs of materials, the direct expenses and the variable overheads (Brown). The applications of marginal costing revealed that Ford was able to support a price advantage relative to General Motors and Chrysler due to its…… [Read More]
7. Overall Performance
Lufthansa is one of the strongest corporations of the globe and a major player on the European airline market. Its success is obvious in the satisfaction of their customers or the fact that their employees love working for the company, and it often materializes in opportunities for growth and development. Throughout the past recent years, the German airline organization has managed to increase its customer base, its fleet as well as its product offering. But these are not the sole indicators of prosperity. The financial analysis of Lufthansa revealed a strong economic agent. Despite the existence of some few issues which…… [Read More]
Financial Analysis of Nike
Nike Corporation (NKE: NYSE) is a global leader in the research and development, design and global marketing of a series of apparel, accessory, equipment and footwear products. The company is globally recognized for its excellence in marketing with the Nike brand being considered one of the top ten globally every year in consumer surveys where unaided awareness is the basis of analysis (Kwon, Kim, Mondello, 2008). Nike has one of the most extensive supply chains of any global apparel manufacturer, with a series of supplier quality audits and compliance standards including Corporate Social esponsibility (CS) initiatives and programs are enforced across the thousands of companies it sources from (Doorey, 2011). Today Nike operates in 170 different nations, dividing their overall operations into six divisions including China, Central and Eastern Europe, North America, Western Europe and Emerging Markets. Nike has over two dozen product lines it sells…… [Read More]
5 times the actual value of equity.
The return on investment is calculated by dividing the total net profits by the total assets value and shows the "overall effectiveness to generate profits from total investment in assets." At the Colorado Group, the return on investment amounted to 20.4% in 2006 and 21.5% in 2005. The small decrease from 2005 to 2006 can be explained by the fact that that the net profits decreased significantly during this period of time and that the decrease of the total assets value was by no means similar in value.
The gross profit margin is calculated by dividing the net sales minus the cost of goods sold by the net sales value and shows the "profitability of a company's sales after the cost of sales has been deducted." In this case, in 2006 this ratio was equal to 54.4%, as compared to 55.9% in 2005.…… [Read More]
This was able to guarantee the company a steady and sustainable growth, encouraging a constant profitability over this period of time.
Further more, the company is well-known for its principles of improving its performances and attempting to be more efficient in everything it does. Throughout its existence, the American retailer has focused on implementing information technology techniques in almost all its activities as the common belief was that automatization drives lower costs, lower prices, lower inventory, shorter delivery time and so on. Following these principles religiously, Wal-Mart has become one of the most efficient players in the entire American market, not just in its industry. Efficiency then was logically driving higher productivity rates and increased profitability for the shareholders.
Part D Company Report
The American retail market is dominated by 3 major players: Wal-Mart, Target and Kmart (see table 2). In 2005, the WalMart's market share was 8.82% increasing 0.2%…… [Read More]
hus, today, if someone asked you whether they should invest in Apple, Inc., the answer would be "yes."
Appendix a Steve Jobs: CEO and Co-Founder
Steve Wozniak: Co-founder
imothy D. Cook: COO
Peter Oppenheimer, CFO
Philip W. Schiller: SVP of Marketing
Jonathan Ive: SVP of Industrial Design
ony Fadell: SVP of iPod
Ron Johnson: SVP of Retail
Sina amaddon: SVP of Applications
Bertrand Serlet: SVP of Software Engineering
Scott Forstall: Vice President of Platform Experience.
Mac Personal Computer System
Mac OSX and OSX server
Ipod and iunes
Apple Remote Desktop
Final Cut Studio
Final Cut Studio
Apple has seen new success as a result of its iPod music player, which has increased profits by $320 in the second quarter of June, 2005. he positive reviews of iPod has given the…… [Read More]
This seems to have been in response to the perception of an upcoming slowdown and indicates that the firm is both cognoscent of its liquidity position and is taking steps to ensure the robustness of that liquidity position.
Moreover, in terms of cash flow coverage, State Street is in a solid position. Cash flow coverage measure the ability of the firm to pay its interest expense. In each of the past three years, State Street has generated more interest revenue than they have incurred interest expense.
Because it is difficult to separate operations and investments in a financial services firm, such as State Street, measuring the firm's operating efficiency is valuable. State Street's asset turnover is 6.7%. The gross margin was 15.1% in the past year, slightly down from the previous year. Overall, the gross margin has been steady and healthy over the past few years. If one were to…… [Read More]
92%. This compares to the 0.36% for its peers last year and 17.42% over five years for the sector. UHS has a net profit margin of 3.86% and a five-year average net profit margin of 4.49%. The sector averaged a net profit margin of -0.38% last year, but has a five-year average of 12.27%. hat this indicates is that historically UHS has lagged its peers in terms of bottom line margins. They have, however, been able to sustain those margins during a downturn in the business cycle whereas their competitors have struggled. This stability is a sign of financial strength. It may also contribute to their willingness to be more highly levered than most of their competitors in order to drive growth.
Revenue growth last year was 13.36%. This compares with 6.5% the previous year and 8.19% the previous year. The five-year average growth rate is 8.01%. Revenues grew faster…… [Read More]
Conduct a benchmarking analysis
As explained by Prasnikar, Debeljak and Ahcan (2005) benchmarking depends on comparing between two activities of an organization and another. In our case, we shall compare McDonald's activities and those of its competitors, Burger King and Wendy's.
• Best practices
McDonald's as a main player in the fast food industry is concerned with best practices with the industry. To this end, the corporation has adopted some best practices that include sustainability, nutrition and well-being, employee experience ad environmental responsibility. Accordingly, McDonald's protects the environment by going green and using methods that protect and conserve the environment. McDonald's also encourages its suppliers to uphold effective environmental. The company treats it employees well and offers them good working conditions as a way retaining them. Employees are offered training and promoted accordingly. McDonald's also adheres to ethical conduct its operations and food items are produced ethical. Similarly, the company…… [Read More]
Suppose you are comparing two firms within an industry. One is large and the other is small. Will relative or absolute numbers be of more value in each case? What kinds of statistics can help evaluate relative size?
Gibson, Charles H. (2012-05-10). Financial Reporting and Analysis (Page 217). Cengage Textbook. Kindle Edition.
When comparing two firms that are unequal in size, the relative financial ratios are more appropriate for any type of comparison. The advantage of using ratios is that they represent a metric that can be easily compared with industry standards or other specific companies of different sizes. The financial statement represents a snap shot of a company's performance over a given time period and the financial information that these reports provide can allow the analysis of a wide range of different ratios. These ratios can provide insights to factors such as the company's ability to repay…… [Read More]
61). ("Quick Ratio,"2010) ("Georgia Power," 2010) the greater the number the better the short-term liquidity position the company is in. In this particular situation while Georgia Power is not facing a liquidity crisis, their level of short-term liquidity is lower than it should be.
When you put all of the different pieces together, it is clear that there they are saying that Georgia Power is good long-term investment. This can be seen by the 4.7% return on equity that they are delivering to shareholders. The total amounts of debt are reasonable with the company having a total debt ratio of .654. This is below the number of 1.0, which indicates that the company has more than enough assets to cover any kind of liabilities. However, when you look a little further, the short-term indicators such as: the quick ratio; shows a different picture. In this particular aspect there was…… [Read More]
ationale for choosing the company for which to invest
The company selected for this financial research report is Intel Corporation. The rationale for selecting this company is because Intel is considered to be one of the major pioneers and forerunners in the field of technology. Intel Corporation dominates about 80% of the market share that is made up of microprocessors.
It is imperative to note that the financial statement of a company alone offers limited understanding and insight into the performance of the company itself. So as to attain a much profound and richer comprehension of what is going on within a company, there has to be a relevant basis of comparison. Comparison can include making an analysis of financial ratios of the company as well as the industry benchmarks it offers the stakeholders, with tools to detect any strength and weaknesses of the company. This…… [Read More]
In the case of Arctic, the company is relying, in terms of long-term financing, almost exclusively on retained earnings. Retained earnings can be defined as earnings that are "retained by the company to be reinvested in its core business or to pay debt," basically, a form of not paying out dividend to the shareholders and reinvesting profit. Retained earnings amount for 65.1% of total asset value, a similar proportion as the one in 2003.
Retained earnings play the same role at Polaris as well. In 2004, these amounted up to 46.2% of total asset value. On the Polaris 2004 balance sheet, on the other hand, the retained earnings are accounted for as shareholders' equity.
As a conclusion in terms of debt usage, both companies use no or almost no long-term bank debts to finance their activity and there is no financial leverage worth analyzing. In both cases, the shareholders' equity…… [Read More]
For both debt ratios, the lower their values are the more conservative the company is, choosing to finance its operations/investments from internal sources. However, such a company may miss out on growth and investment opportunities.
It is recommended for companies not to finance more than 50% of their capital via external debt. The debt-to-equity is superior to the recommended values, indication a much higher proportion of equity financing via external debt. The debt-to-asset is also higher to the recommended values, but much closer indicating that the assets are around 80%financed by external debt.
The two indicators suggest that the group is heavily financing its capital/assets from external debt, which is explained by the group's expansion strategy. However, FFS's values are not as justified because the company didn't expand as fast as the group, yet the debts were proportional to those of the group. At both levels, group and company, the…… [Read More]
Financial Analysis of Affordable Health Care Plan in Maryland
The implementation of the Affordable Health Care Plan in Maryland requires comprehensive analysis of the financial aspects of this health policy relative to its health benefits, especially in enhancing health coverage to the low-income individuals and families in this state. The financial analysis process of this health policy requires identifying the most suitable means for addressing financial uncertainties in the process and examining the economic viability and financial aspects of allocation process. These are crucial elements to consider because they affect the economic feasibility of the proposed health policy and helps in determining its suitability in addressing the existing health care issues and concerns.
According to McLaughlin & McLaughlin (2014), there are three major approaches that can be used to handle important uncertainties in the financial analysis of a proposed health policy (p.302). These three approaches are adding a risk premium…… [Read More]
Financial Analysis of Mcdonald
A financial analysis McDonald's Cor
McDonald Corporation is a global company that conducts business in 117 countries. McDonald operates 32,737 restaurants and 26,338 franchises in the highly competitive fast food industry. Since 1940, McDonald has built a loyal customer base by continuing dedicating to customer service and providing high quality fast food for customers. Presently, McDonald could boast of over 60 millions customers and the company serves average of 64 millions customers daily. In the United States, and other countries where McDonald is operating, fast food business is very competitive. Despite the competition that McDonald is facing, the company has been able to record revenues of more than $16 billions in restaurants and revenues of more than $7 billions in franchise restaurants business. McDonald operates in six geographical locations. The company business operations are in the U.S., Europe, Middle East, Asia-Pacific, Latin America and…… [Read More]
financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be issued. Specifically, the issue is whether "we" would lend Chevron 10% of its net assets. The net assets for Chevron are $209.474 billion, so the amount in question is $20.9 billion in new debt. The report will first analyze the financial statements of Chevron in general terms, focusing on trends and ratios, and drawing conclusions about the overall financial health of the company based on that analysis. The second part of the paper will outline some of the criteria that a lending institution would have for lending to a company, and then that criteria will be applied to Chevron specifically.
Chevron operates in the hydrocarbon industry, where it is one of the world's largest companies with sales of $241.9 billion and net…… [Read More]
financial analysis and more specifically financial ratios has been noted by Finkler, Marc and Baker (2007, p.253) to be important to managers since it can help them in making informed decisions. In this paper, we present the concept of ratio analysis as applied to healthcare facilities.
The concept and purpose of ratio analysis
Financial statement analysis is noted by Flex Monitoring Team (2005) to be very important to managers, boards, payers as well as lenders for them to effectively make the right judgments on the financial health of their organizations. atio analysis is one of the most accepted methods of assessing the financial health of an organization. The data that is used for ratio analysis is derived from income statements and balance sheets. It is a fact that most health care systems, hospitals as well as various other healthcare organizations routinely employ ratio analysis in evaluating their financial condition and…… [Read More]
The report provides the comparative analysis of Sun Trust Banks Inc. (STI) vs. U.S. Bancorp. (USB) using the following valuation tools:
Price/Earnings per Share
Price/EBITDA per Share.
The paper also compares these ratios to industry average.
A Price/Book Value is a valuation ratio used to measure the market value of a company after all the liabilities has been deducted from the company assets. In other words, Price/Book Value is a valuation ratio generally used by investors to compare a stock's per-share price (market value) of a company to its book value (shareholders' equity). Typically, it reveals the estimation of value of a company after it has been liquidated showing remaining net assets entitled to shareholders after a company is liquidated.
There are two methods to calculate the Price-to Book Value of a company. First, we can divide the company market capitalization by company's total…… [Read More]
In the case of 'ridge Quay Pasta Palace', the current ratio is obviously too high. Indeed, the value has gradually decreased since 2006, but its value is still significantly high. In 2006, the current ratio was 5.69, which is more than 5 times the recommended value of the current ratio. In 2007 and 2008, this has decreased to 4.10 and 4.22 respectively, still significantly above 1.
Looking at the company's balance sheet, the problem seems to be with the accounts receivable and the conclusion that can be drawn is that the company is not collecting its money efficiently. Given the nature of activity of this company, as a restaurant, one can understand that, perhaps, the management is not collecting all dinner bills or something similar. However, the conclusion is that this is something that affects its short-term financial stability.
The quick test, calculated in a similar manner, but removing the…… [Read More]
Financial Case Study
McDonald Corporation specializes in the food service globally. The company started operation in 1940, and in 1967, the MacDonald registered its trademark. The primary product of McDonald includes chicken, hamburgers, soft drink, French fries, dessert and milkshakes. Over the years, the company has expanded its menu and included wraps, fish, salads fruits and smoothies. Presently, the company operates its business through either affiliate or franchise globally and the company realizes bulk of its revenues from the fees collected from franchise. Moreover, the company derives its revenues from the royalties and rents. Since MacDonald has started operations, the company has enjoyed rapid growth. At the end of the 2012 fiscal year, the company recorded the annual revenues of more than $25.7 billion with the net profits of $5.5 billion. The company also recorded the market capitalization of $94.5 billion. The company operates in 119 countries and…… [Read More]
Financial Analysis of Pepsi and Coca Cola
Synopsis of Companies
Pepsi and Coca-Cola companies boast of having two of the most recognized and preferred or desired beverages in the whole world. These two establishments are very fierce competitors in the beverage industry and incessantly compete with one another with the main objective of becoming the main and top distributor of not just sodas built but other beverages as well. This fierce rivalry that exists between the two companies is referred to as the "Cola Wars" and began in the period leading to the 1980s and has since then continued and become even more intense. In the period leading to the 80's Pepsi boosted and increased its market share, a time which coincided with Coca Cola Company being the top most distributor and supplier of beverages (PepsiCo Annual eport, 2013).. At this point in time, the two companies energetically and dynamically…… [Read More]
The auditor's opinion letter is a basic form letter that says it conducted the audit according to accepted auditing principles, and that the financial statements of Major Medical Center accurate reflect the financial condition of the organization. It is impossible to tell from the auditor's statement itself that anything is wrong -- this is the standard form for such a statement and most of them look like this.
The first thing to look for would be numbers that have changed a lot when there is not much reason for them to change -- the outlying events are quite important. The revenue has not changed much, so this looks like a mature business. Therefore, there should not be major changes in other line items. Salaries and wages have increased in line with the increase in revenues, which makes sense. The one thing that concerns me is "Net assets released…… [Read More]
JD Wetherspoon is one of the largest pubcos in Britain, with 880 properties, and had annual turnover last year of ?1.409 billion (Yahoo! Finance, 2015). The company competes with a cost leadership strategy, something that should be reflected on its income statement. It seeks to undercut competitors using its economies of scale in purchasing, and other cost-saving techniques, ranging from zero guaranteed hours for 80% of its workforce to deliver labour cost flexibility (BBC, 2015), to its focus on real ale, which sells at lower price points than lagers. The company is an industry leader, and has been able to win a substantial amount of market share away from both traditional independent pubs and from other pubcos alike, despite operating in a market characterized by intense competition (Aldalou, 2015). This paper will examine the financial performance of JD Wetherspoon over the past five years, along with the performance…… [Read More]
Bean Financial Analysis
Founded by eon eonwood Bean in 1912, .. Bean, Inc., a Maine-based manufacturer and mail-order retailer of sporting goods and apparel, has increased its sales from $3 million in 1967 to over $120 million in 1980. Current projections predict an annual compounded growth of 25% through 1985. Thus, management must make some important decisions regarding how it should achieve this growth: through mail order, by increasing retail store space, by increasing manufacturing operations, or by taking the company to a global level. In managing growth, the company president hopes to maintain the highly personal service, excellent product quality, and friendly, informal working environment that he considers most important to the company's popularity with customers and employees.
This research paper will analyze previous years and use that financial information to forecast how successful the organization may be for 1981. 1981 is a crucial year, because, if the 1981…… [Read More]
Investors, however, are likely to see through these changes. he company's turnaround is striking, but many of the changes are listed in the annual report, the depreciation change in particular. he listing of that change on the statements was undoubtedly mandated by law, but the other changes were buried a little bit more. However, the investment community can reasonably determine that increasing payables is a sign of the company remaining in a precarious position, as is the deferral of pension obligations.
3. he company's future prospects are reasonable. hey have a strong customer base and for the most part the restructuring effort was successful. he acquisition of new capital may have served a useful short-term purpose on the balance sheet, but it also allows Harnischfeger greater financial flexibility. he company's immediate future is no longer in doubt.
However, the picture the company paints of its future is not entirely accurate.…… [Read More]
In fact, as recently as October 11, 2005, Tim Beyers of the Motley Fool pointed to the 38% increase in the closing price of ITT's stock from a year ago at the same time, and suggested that the company is "worthy of further investigation" (Beyers, 2005, p. 4).
Weaknesses. Although Apollo has not fared well in recent months, ITT's competitors continue to represent a major threat to the company's efforts to capture additional market share in this dynamic industry; the company's initiatives to attract increasing numbers of minority students, though, together with its emphasis on developing new degree programs that reflect current market demand may serve to offset this increased competition.
Critical Issues. The most critical issues facing the company today are the pending investigations by the SEC and the Department of Justice (see further discussion in 4.0 Business isk Assessment below).
Operating leverage.…… [Read More]
Financial Analysis of Morrison's PLC
Morrison's, the UK supermarket may be assessed as a potential investment. The firm may be considered by looking at the way that the share price is performing, comparing it to its past performance as well as benchmarking the performance against the industry
The share price will reflect the market expectations, so as well as looking a past performance it is also necessary to look to the potential future; this is often achieved by looking at the financial ratios of the firm considering the performance both vertically and horizontally.
Morrison's appears to have had a relativity mixed year; the share price stands at 277.60, closing price on the 24th August, 2012 (FT, 2012). The share price has been volatile, increasing and decreasing, over the last 52 weeks the high has been 340.00 and the low has been 261.00 (Yahoo Finance, 2012). Over the year the…… [Read More]
The company is itself a major driver of innovation in this area, and the efficiency of renewable energy engines and power generators will decrease the cost of operations for the company even as the same products and efficiency increases will enhance and increase its sales (Quantum 2011). Twnety years from now, it is expected that major utility grids will at least be in the beginning stages of being capable of handling energy input from renewable sources, and this will increase industrial demand for many of Quantum Technology's products enormously (Foo.com 2011).
Quantum Technology's diversification is a major strength of the company, as it is somewhat shielded from major changes in any one application or industry in which its products are used. A weakness can be found in its dependence on external business contract and a lack of direct-to-consumer sales. A large opportunity exists for the company in the…… [Read More]
FINANCIAL ANALYSIS OF DELL AND APPLE
Current asset ratio
Dell has 1.48 current ratio in 2011 as compared to previous year (1.28) their short-term financial position has improved, which shows that dell is in position to meet its short-term liabilities without any difficulty. On the other hand, apple short-term financial position has fallen from 1.6 to 1.5 but it is still in a position to meet its short-term financial position.
Inventory turnover ratio
Dell has a slow rate to covert its stock into sales (8.25) as compared to Apple, which has a rate of approximately 26.25. Therefore, dell has more funds locked in stocks.
Days sales in inventory
Dell takes fewer days to convert its stock into sales in 2011 as compare to apple it shows that its management is more efficient in handling inventory.
Receivable turnover ratio
Apple has slightly better in receiving amount from its debtor as…… [Read More]
The use of FID in this industry also has been more tactical and focused on the scanning and inventory management systems as opposed to automating an entire supply chain and creating auditabiluity and therefore increasing performance of the entire chain. This is one of the shortcomings of how the industry is shortchanging itself in terms of technology adoption. In addition, the majority of spending in this industry is going to most likely be centered on marketing (Bourdeau, 26) in addition to merger and acquisition activity. The dual strategy of driving for greater differentiation but also acting as the consolidator are the most likely strategies of market leaders in this industry looking for growth strategies going forward. As a result of all of these factors, Foot Locker faces a very challenging future.
Tables 5 and 6 provide analysis of the footwear industry by comparing Foot Locker's performance relative to their top…… [Read More]
Apple Inc. Investment Analysis and Recommendations
Apple Inc. is an American multinational company specializing in designing and producing mobile telecommunication devices that include iPhone, computer software and hardware, Apple TV, Apple Watch, iPod, and other electronic devices. Apple was incorporated and publicly registered in 1977. Headquartered in California, Apple is one of the most successful American companies in term of revenue with the annual revenue reaching $233.7 billion at the end of 2015 fiscal year. On February 2016, Apple recorded $521.3 billion worth of market capitalization. While Apple designs the bulk of their products in the United States, the company's manufacturing plants are located in China. Apple also operates in Europe, Japan, Canada, and Latin America. (Apple Inc. 2015).
Board of Directors
Apple Inc. Board of Directors is overseeing by the company CEO (Chief Executive Officer) and other competent senior management. The Board oversees the day-to-day operations of the company…… [Read More]
A high rate of turnover may indicate too strict credit policies or an inability to extend credit. It is the tradeoff between sales and tying up funds in receivables.
Sales to Working Capital - measures the relationship between sales and the working capital of a business. Too high a ratio may indicate an insufficient amount of working capital. Too low a ratio may indicate unproductive assets.
Sales to Total Assets - measures the ability of a business to use assets productively. This ratio may be indicating conditions of excess capacity, inefficient or obsolete equipment, or temporary changes inn demand.
ertelsmann appears to be healthy in terms of short-term liquidity. The Acid Test Ratio is normal for companies of this size and the Current Ratio is higher than normal and indicates that the company should have no trouble meeting short-term financial commitments. The capital structure ratios also appear to indicate that…… [Read More]
The leadership personnel of the companies were far more affected by this merger, and there is no evidence that this merger was viewed as anything but a positive move for both companies by these individuals (Coffee 2006; Taft & Musich 2006; Knorr 2006). The cash premium that was paid to Mercury Interactive shareholders and the ongoing increase in price for Hewlett Packard stock following the merger makes it likely that shareholder response to the merger was equally positive (Google Finance 2010; Hewlett Packard 2006a).
Many mergers, especially in the past decade of increased scrutiny of accounting methods and financial reports, are quite complex and time consuming. The merger between Hewlett Packard and Mercury Interactive, however, was accomplished with a great deal of simplicity and efficiency. Though the primary benefits to both companies were found in the boosted assets, market share, and operational scope of the merged entity, the efficiency…… [Read More]
investment in a rental/real estate property. There is a one-time purchase of $10,000 in land that can subsequently be rented for a yearly $3,500 rent for a period of several years. At the end of the rental period, the investor aims to sell the land for a certain price. The longer the period of the rental is, in number of years, the more the land will degrade and, as a consequence, will be valued at a lower sum at the end of the entire period of time.
As a consequence, the several scenarios that will be taken into consideration will look at a comparison between longer years of rental vs. lower price for the final sale of the land or a shorter period for the rental period, but a higher price for the final sale at the end of the rental period.
This paper will look at three different scenarios…… [Read More]
5% 2010 over 2009, indicating a major growth bounce back. What these figures indicate is that McDonalds may be priced at the high end of its range. The company is trading just off of its 52-week high and indeed is just off of its 10-year high.
The market's growth assumptions are reasonable. China has not faced a strong economic downturn and is therefore going to continue to be a robust market for the company. Same store sales in April were up 4.9%, indicating that McDonalds' demand is coming out of the economic downturn. The company has been able to penetrate the Indian market, where it cannot market either beef or pork. Overcoming a challenge like that demonstrates that this company can continue to expand until it saturates the entire planet if it so desires.
The major international threat, Yum Brands, is expanding rapidly to build out market share but is…… [Read More]