7% in 2003 to 8.3% in 2004, and has climbed to the number of 9.2% in the latest fiscal year. Thus, the company has achieved better operating profit compared to Northrop Grumman company.
t is not possible to examine financial and operating position of the company by one or two ratios as the profitability and revenues are not always reflective of the true company ability to exploit and utilize assets available to the company. Asset utilization is the ratio reflecting the management skills of the company to generate revenues compared to the value of assets the company has, or the ratio of total sales to the value of total assets. Lockheed Martin company has achieved the following asset utilization ratios: 1.21 in 2003, 1.39 in 2004 and 1.34 in 2005. Thus, the company exploits assets efficiently, but the asset utilization coefficient has decreased slightly in the last years. Northrop Grumman…… [Read More]
Investments in research and development or customer satisfaction programs may show promise but traditional accounting measures, partially because of legal restrictions, place an emphasis on quarterly or annual returns (Ittner & Larcker 2000). And "under U.S. accounting rules, research and development expenditures and marketing costs must be charged for in the period they are incurred, so reducing profits. But successful research improves future profits if it can be brought to market" (Ittner & Larcker 2000).
hile in the eyes some analysts non-financial measurements are frustrating because there is a lack of statistical reliability when selecting and measuring such subjective criteria, on the other hand, by knowing the value drivers to a specific industry, a more complete and complex picture can emerge. "The choice of measures must be linked to factors such as corporate strategy, value drivers, organizational objectives and the competitive environment. In addition, companies should remember that performance measurement…… [Read More]
Management Consultation: Improving Financial Performance
The scenario presented by the prompt here concerns a company that we will refer to as a Silly Putty, Inc. Charged with the responsibility of producing industrial-sized barrels of Silly Putty for distribution to packaging plants on a multinational level, the company finds itself at a cross-roads. As a managing consultant, I have been brought on board to help the company navigate the most difficult point in its long and storied history. ith commodity costs rising and revenues suffering in the face of a global recession, Silly Putty, Inc. must make difficult decisions concerning its future.
As the discussion here considers whether survivability is a possibility -- and if so, under what conditions -- it is necessary conduct a concise environmental scan. For Silly Putty, Inc., the environment is defined by three overarching factors. The first of these is its basic set of cost inputs,…… [Read More]
FedEx Express Financial Performance
The financial performance of any organization can be determined through the analysis of its financial statements. Comprehensive income statement, statement of financial position and cash flow statement are the main financial statements. Every end of fiscal year, a company is expected to report its business operations and financial performance throughout the year for the users of its financial statements. These financial statements are utilized to examine and evaluate not only the financial performance, but also the financial position of a company. Suitable and effective analysis of these financial statements makes it conceivable to accomplish valuable financial information, which can be efficiently made use of for decision making. The purpose of this paper will be to analyze the financial performance of FedEx Express.
With respect to revenue generated, in the past three years, the company's revenue amount steadily and gradually increased from $44.3 billion in 2013 to…… [Read More]
orporate Social Responsibility Practices in Beijing of hina
Theoretical perspectives of corporate social responsibility
The basic idea of SR is that business and society are interwoven rather than separate entities (Wood 1991). As discussed, a number of theories have been identified in the literature to explain SR. For example, stakeholder theory explains how SR is important, and the social contract and legitimacy theories explain why SR is important (Moir 2001). SR includes a number of theories and many studies have discussed agency, stakeholder and social contract that are behind the concept of SR; these theories and SR approaches under the themes of economics, politics, social integration and ethics (Parsons and Sociales 1961). Garriga and Mele (2004) described four groups of theories consistent with Parson in 1961: instrumental, political, integrative and ethical theories. According to these scholars, instrumental theory relates to the economic features of the interactions between businesses and society.…… [Read More]
In our case, the increase in value could mean that efficiency of sales, in relation with the inventory, has increased (company's inventories are maintained at a lower level than in 2005).
D2. The Assets to sales ratio stands for the total investment used to generate a certain level of sales. Extreme values can be explained in different methods: an abnormally high percentage may indicate that a company is not being aggressive enough in its sales efforts, or that its assets are not being used at the maximum level of efficiency. A low ratio may indicate that an enterprise is selling more than can be safely covered by its assets, risking to maintain an inferior level of inventory, which may also negatively affect the company's activity. The Assets to Sales ratio is computed by dividing the total assets to the total sales. In 2006 the value of the assets represented 90%…… [Read More]
Volkswagen's Performance And Organizational Structure
Volkswagen's growth over the past three decades has been a roller coaster characterized by numerous ups and downs. In 2002, the company hired Bernd Pischetsrieder, the former BMW boss to help fix its problems. While the new boss developed strategies towards promoting Volkswagen's growth, the well established plans usually go astray. The company's poor performance is evident in the fact that is share price has decline with approximately 50% whereas its profits decreased by 36%. In addition, more than 50% of Volkswagen's 100 managers are not used to making decisions on their own. This is an indication of the huge problems at Volkswagen, which also requires changes in its organizational structure.
Volkswagen's ecent Performance
The decline in the company's share price and profits as well as a seemingly ineffective organizational structure at Volkswagen is an indication of the numerous problems it currently faces across all…… [Read More]
environmental, social and governance (ESG) performance and financial performance of companies
Investors are increasingly recognizing the fact that ESG (environmental, social, corporate governance) elements can substantially affect companies' security rates and financial performance. The aforementioned components' contribution to financial markets has been growing with the rise in number of ESG opportunities and risks within the contemporary international economy. Timely and improved organizational policy-related data access and the effect of organizational policy on communities have made it considerably convenient for customers to express their dissatisfaction by simply quitting a brand. When international brands' images are sullied by ESG-related problems, the resultant instantaneous backlash has the capacity of abruptly and negatively impacting income and demand (Eccles, Ioannou & Serafeim, 2014).
Organizations having a poor reputation when it comes to ESG related matters are vulnerable to monetary risks, including a very genuine threat of facing lawsuits in the future, greater remediation and regulatory…… [Read More]
Financial esource Management
eaching a financial decision regarding heath care services
All forms of industries deemed financial management as expressive in origin till the 1960's. Its basic and sole role was to ensure financing for completing the business's operatives and functions. The department for business planning or marketing would project a net total for meeting the services and meeting daily demands; managers would calculate the assets required to complete a given project needed, equipment's, supplies and building. Financial management is a field which focuses on business securities as well as the markets in which they are in key demand. Also, more emphasis is made on how businesses can tap new markets and unlock their hidden potential. As a result, financial management books were pretty explanatory and predictable in origin during those times. (Sandrick, 2008).
These days, financial management plays a pivotal role in day-to-day operations of a business. The responsibility…… [Read More]
Hyundai company analysis
Finance is a critical function in any business. It acts as an indicator for the health of a company, as well as determining its growth. When a company realizes new investment opportunities and other future aspirations, finance enables such ventures. Thus, finance reflects the performance of an organization (Gruen & Howarth, 2005). Measurement of performance takes place over a period of time. Organizations practically present their financial performance on a quarterly and yearly basis while others carry out a monthly exercise of tracking their performance. The government requires that all companies present an annual assessment of their performance. The information is featured in the form of financial transactions of sales, investments, savings and others. The information is part of a document called the Annul eport. Investors are informed by the annual report of companies before deciding on whether to invest in the company (Mclean, 2003).…… [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]
Therefore, I do believe that qualitative research is necessary. The financial statements can reveal much, but there are definitely instances in which the financial statements require contextual understanding for proper interpretation. Without this understanding, the firm's numbers may only reveal raw data. Raw data can be interpreted any number of different ways, so it is essential that qualitative analysis be conducted in order to place the numbers within a framework that will make understanding easier. or example, Landry's is taking on debt, but we know from the company's statements that this is to finance expansion and that hopefully when those properties are open, the returns will begin to improve.
How the firm makes money is an important consideration. This can help to not only place past performance into perspective but also to provide greater understanding of the firm's future prospects as well. Competitive advantages can be derived sometimes from the…… [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]
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 Appraisal of yanair
yanair's Financial Appraisal
In this report we provide an elaborate financial appraisal of yanair for a naive investor with no financial expertise.
The key conclusions of this report are:
- yanair has a very strong as well as continuously expanding market position which is enabled by its expansion of its fleet by 40 new aircrafts to a total of 272 as well as the opening of new routes (328) and bases.
-One reason as to why yanair has achieved as well as maintained its very strong position is its dedication to quality service care and service provision. These approaches have ensured that the company has an exceptional financial performance as well as improved efficiencies.
The Strategic Issues that are facing yanair
The current increase in fuel prices by about 37% which the company attempted to offset by the instituting a 12% increase in average fare. The…… [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 analysts play a number of roles within an organization. They made assessments of the value of investments the firm has or may have in the future. They can specialize in determining the value of projects. In addition, financial analysts are engaged in risk assessment, and take steps to determining the best ways for the firm to mitigate the risks that have been identified. Overall, financial analysts use a multitude of different knowledge sets including taxes, finance, economics and risk management to assist the company in making the best financial decisions for the firm (BLS, 2010).
a )The net profit would be the gross profit less operating expenses, interest expenses and tax expenses. Thus, the net profit is: $1,000,000 - $345,000 - $125,000 = $530,000. From this the taxes are removed: $530,000 * (1-.3) = $371,000. The preferred stock dividends of $57,000 must then be removed in order to determine…… [Read More]
A survey will be developed as a part of implementation of the BSC system in this hospital to track customer satisfaction with the services that they receive here.
A positive image of the organization translates into repeat business and a more positive reputation in the neighborhood, Patient satisfaction translates into increased future revenues. It also has some positive impact on risk assessment as well. The more satisfied the customer is, the less likely they will file an adverse lawsuit against the hospital. Patient satisfaction has a direct impact on the profitability of the organization. The number of complains that the facility receives can also be an important measure of the overall customer satisfaction. However, this number alone may not tell the entire story. A customer survey is the best method for addressing overall satisfaction with the facility.
Patient involvement was another important indicator of BSC technologies. Patient involvement means providing…… [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]
Despite having an exceptional pace of growth throughout the early years of their existence, Saatchi & Saatchi is facing client attrition and declining revenues. What had happened through their continual restructurings was the corporation lost track of their core vision, mission and values. The distance between these three core attributes of their business and financial performance had drifted apart so far that financial results were showing the increasingly disjointed nature of their corporate culture (Greenhalgh, 2004). The reliance on a balanced scorecard to unify their core vision, mission and values back to financial performance was needed (Niven).
As a result of the continued deterioration of financial and customer performance, management at Saatchi & Saatchi put into place financial and customer-driven goals for the company. The financial objectives included the foundation of their company's resurgence and comeback, including growing the revenue base faster than market rates, converting…… [Read More]
The horizontal analysis showed that FedEx's profits in 2009 were just 5% of their profits in 2007. Given that EBIT contributes to the T3 component of the Z-score, which is the most significant component by weighting, this would explain why the Z-score dropped so much. The other major contributor to the Z-score is the drop in the company's market cap. The market cap is deemed important in part because the market's view of company reflects the most known information at the time. The market has a strong ability to predict financial distress. A depressed stock price indicates that investors need a greater percentage return on the expected future cash flows from the company in order to invest -- an indicator that the market believes the firm's risk level has increased. The market cap contributes to the T4 component, which is the smallest component of the Z-score. However, the decline in…… [Read More]
Financial Resources Performance
The Managing Director,
King Edwards Electronics,
INTERNAL REPORT. FIXING RISK, UNCERTAINTY AND CASH FLOW DISCREPANCIES
In making investment decisions we are dealing with; and actually shaping; the firm's future, but the future is not certain and investment decisions, whether personal or corporate, are invariably undertaken with imperfect knowledge about the future. The future may turn out to be better or worse than expected. For the corporate firm, the objective of an investment decision is to allocate resources only to those projects which will preferably increase, or at least maintain, the firm's value and the wealth of its shareholders. Clearly it would not make good financial sense to invest in projects which would reduce corporate value (Ang, 2002).
The problem for managers is that at the outset it is often difficult to determine which of the firm's potential investment projects will enhance corporate value…… [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]
The price is at its level of five years ago, when the external environment was much more favorable for Starbucks. The price of arabica has increased significantly and while Starbucks is a major buyer, it is not the largest buyer and does not have significant pricing power. The competitive pressure that has been applied by McDonald's, Dunkin Donuts and a host of imitators has not eased. Given this, margins can be expected to remain at current levels. While the company can still achieve more improvements with respect to its internal metrics, those are unlikely to drive the stock much beyond its current level. The key driver for Starbucks' stock in the coming years is going to be more dependent on foreign market growth than any other single factor. Foreign market indicators are not a cause for intense optimism. Dubai's default calls into question the long-term growth potential of the Middle…… [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]
Financial esearch eport
This is a review of Caterpillar, Inc.. The report is broken down into three sections -- company overview, ratio analysis (which includes a trend analysis), stock price analysis -- that are designed to give a thorough overview of the complete company.
Caterpillar is one of the best known name brands, around the world for its manufacture of heavy machinery made, primarily, for the construction industry. The company began operations in 1925 under the name Caterpillar after a merger was formed between Holt Manufacturing and C.L. Best Tractor (USSEC, 2011). The company has set the standard in its industry becoming the largest manufacturer of hauling machines in the world.
Caterpillar operates primarily as a manufacturer of heavy equipment, but, with the realization that they needed to be able to finance purchases of their products and help maintain them, the company has also diverged into financial services…… [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]
For most parts of history, government financial executives have been taken as scorekeepers, and made responsible for collecting, processing and reporting the financial information that used by elected officials and senior managers who use them in making their decisions. The question is whether their role has now changed with the present importance of information technology. (From Scorekeeper to Business Partner: The Evolving ole of Government Financial Executives)
Now there is increasing evidence of the importance that information technology is getting in public administration and this is resulting in more and more insistence from the public that government financial executives have a greater say in all decision making activities of the government. The finance executives are now the individuals to lead the charge for getting an entrepreneurial type of government and have it judged based on its performance. For most of the finance executives now, the changes are leading…… [Read More]
e. they ignore other key indicators and measures of financial performance. Other equally important measures and/or indicators of performance in this case include but they are not limited to employee morale, client service and satisfaction, quality of goods or products, etc.
Another key limitation of ratios is that they are only useful when it comes to the comparison of firms operating in the same industry. Utilizing ratios in the analysis of financial statements of companies in different industries could lead to a distortion of the information desired. This is more so the case given that entities in different industries are more often than not exposed to different regulations, market conditions, etc. In practice, finding two companies that are identical in every way is impossible.
atios could also be affected by changes in price levels. According to Lasher (2010), financial statements are often distorted by inflation. In the author's words, "during…… [Read More]
In the final calculation therefore, the hospital will suffer the most, the MO next, and PHOs the least. The entire triad -- hospitals, physicians, and insurers -- is usually comprised of a power struggle revolving around which one ends up dominating a local market. In the Marcus-Welby case, insurers seems to have been the first to 'get its act together', but if a critical band of physicians band together, they could dictate the terms under which they will join the network, and thus preempt or overturn the high level of prices raised by the insurers.
Requirements for success
Clinical care seems to be the most significant variable (Burns et al., 1994; Zuckerman & Kaluzny, 1991). To the extent the more value the service can offer the greater its amount of success. Findings also demonstrate that the greater the degree of perceived physician-system integration, the greater the system's inpatient…… [Read More]
The industry average current ratio is 2.5 (MSN Moneycentral, 2009), so the Gap has less capacity to meet its current obligations than many of its peers. However, in the retail industry most firms have a large portion of their current assets tied up in inventory, which distorts the current ratio figures higher. The Gap's figure of 1.855 is strong and indicates that the company will have little difficulty in meeting its upcoming obligations.
Overall, the liquidity measures provide an indication of the company's short-term health. Low amounts of working capital or a poor current ratio can indicate that the firm is in short-term distress. The figures for the Gap in 2008 do not indicate a firm in financial distress. Rather, they indicate that the company will have little difficulty in meeting its upcoming financial obligations. The company has strong working capital figure and a high current ratio. The latter is…… [Read More]
I (We) have compiled an accompanying Statement of Financial Performance and Statement of Financial Position as of (at) June 30, XXXX, in accordance with the Statements of Standards (Putra, 2012) and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statement information that is the representation of management (owners). I (We) have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or other form of assurance on them (Putra, 2009).
The sale of the appliance is recorded by transaction date in the general ledger, cash receipts journal, sales journal, and have a dated cash register receipt and sales receipt. The general ledger has a debit of cash for $800 and a credit to sales for $800. Transactions are recorded by the Accounts Receivable Clerk and verified and…… [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]
Performance Assessment Systems in Organizations
Many companies conduct performance assessment systems to cope with the current fast-paced global economy. The assessment reflects on companies past outcomes known as lagging indicators as well as the current leading indicators to inform the management on the latest developments. These indicators appropriately analyzed, reported and evaluated, help the companies achieve higher profits.
The use of leading indicators is increasingly getting popular with many companies and businesses today. According to Gjerde and Hughes (2007), computed deviations with standard cost systems give the management timely data on shortfalls of production allowing them to put emphasis on the unfavorable outcomes and take corrective measures to enhance profits.
In the case of South West Airlines, they put in place a performance assessment system that saw it successfully execute a cost leadership strategy. The liner recorded a growth in operating income using the performance assessment system and took advantage…… [Read More]
Financial Measures and Management Practices
New business leaders, aspiring entrepreneurs and even experienced professionals are all confronted with a bewildering array of financial measures that are commonly used to reflect how well companies are performing. Moreover, there are a number of management tools that are available that can be used to evaluate these financial measures provided that the practitioner understands what they mean and how they can be used. To this end, this paper provides a review of the relevant juried and scholarly literature concerning various financial measures and management practices, followed by a summary of the research and important findings in the conclusion.
eview and Discussion
How do stock prices and dividends reflect the value of the firm?
Although they are not infallible of course, stock prices provide a general reflection of the fundamental value of a firm that includes the present discounted value of future firm earnings (Carlstrom,…… [Read More]
financial statements of Barnes and Noble and Borders Group for fiscal year 2009. The companies' statements provide information about their financial health, as well as discuss plans for the coming fiscal year.
The balance sheet reveals detailed information about each company's assets, liabilities and owners' equity (net worth). It is based on the accounting equation Assets = Liabilities + Stockholders' Equity; the two sections of the balance sheet must equal each other just as they do in the equation. This equation represents the basic accounting premise: assets, the means used to operate the company, are balanced by a company's financial obligations, along with the equity investment brought into the company along with its retained earnings (Investopedia, n.d.).
As both the Barnes and Noble and Borders Group statements show, there are four main financial statements:
The balance sheet, which shows what a company owns and what it owes at a fixed…… [Read More]
According to these analysts, "The implicit assumption underlying the price-to-earnings method is that the fair market value of the closely held business can be approximated from the market value of comparable publicly traded businesses. To implement this method, the valuator must be able to identify a set of presumed-to-be comparable publicly traded companies and obtain sufficient information on each to verify the extent of comparability from an economic, management, and financial perspective. No publicly traded company will be precisely comparable to the closely held business being valued, so informed judgment must be exercised" (p. 81). As a general rule, the smaller in size and the more limited the scope of activities of the business being valued, the less likely there will be a set of publicly traded companies that are comparable, or even a single comparable publicly traded company. Publicly traded companies are for the most part large, measured in…… [Read More]
Major Line of Business
Apple designs and markets consumer electronics. The company has a strategy of integration that sees it as a designer of both software and hardware, which is unique in the industry. Apple competes as a differentiated player, with products priced at the high end of their respective ranges. The major business lines for Apple are as follows. In the 2015 fiscal year, the iPhone contributed $155 billion in revenue out of a company total of $233 billion. The Mac line of computers contributed $25 billion, iPad $23 billion, services nearly $20 billion and other products a further $10 billion. The iPhone saw a strong increase in sales for the fiscal year, while the iPad experienced a substantial decline in sales. Sales are spread around the world. The Americas is the largest geographic segment with $93.8 billion. This is followed by Greater China, with $58.7 billion…… [Read More]
With the operational environment becoming ever more competitive, and against the backdrop of austerity in resource management, the importance of performance-based management (PBM) cannot be overemphasised. Indeed, PBM has increasingly become a common practice in organisations of different sizes -- small and large -- and in diverse sectors -- manufacturing and service, as well as public and private sectors (Ploom & Haldma, 2013; Lutwama, Roos & Dolamo, 2013; Rivenbank, Fasiello & Adamo, 2016; Wierzbinski, 2016). Organisations now rely on performance data to make decisions relating to various organisational processes, including strategic planning, internal management, resource allocation, reporting, as well as monitoring and evaluation.
Defining PBM can be quite problematic, with the term being often confused with performance measurement (Rivenbank, Fasiello & Adamo, 2016). In addition, performance management is often thought to involve only personnel management processes such as employee performance appraisal (Turk, 2016). Furthermore, contention exists over whether it…… [Read More]
Verizon is a national telecommunications company, headquartered in New York City. The company was formed from the breakup of Bell and subsequent mergers and acquisitions. The company has divisions for media, network and technology and customer/product operations. The latter is by far the largest component of the company, encompassing Verizon Wireless, and a number of companies aimed at the enterprise market. Verizon competes against AT&T and Sprint, both of which are large companies in their own right, with similar businesses, in particular in wireless and telecommunications. These divisions reflect an organizational structure that is focused on product. The wireless business is nationwide, but the landline-oriented businesses are focused mainly in the northeast, which is the traditional geography for Verizon's predecessor business Bell Atlantic.
Recent Financial Performance
Verizon's business has fluctuated over the past three years. In FY 2016, it recorded $125 billion in revenue, down from $131 billion…… [Read More]
Research conducted to date for example suggests that, for consortia-based procurement exchanges and Sector Procurement Collaboratives the bargaining power of representing multiple groups of buyers and their collective purchasing power provides economies of scale and leverage in bargaining with suppliers (Devine, Dugan, Semaca, Speicher, 2001). The motivations of purchasing consortia are primarily focused upon gaining expected cost savings and collect information on supply markets (Tella, Virolainen, 2005). Although perfectly in line with accepted marketing views and strategies, there is a gap in this research, which does not take into account the long-term effects of inter-process maturity and transaction velocity over time.
According to Johnston et al. (2003, p. 23), the recognition of trust as an important part of the buyer-supplier relationship does not preclude fact of paucity of empirical evidence to suggest the level of such importance. Trust and its dependent behaviors, as well as its impact on inter-organizational activities,…… [Read More]
Develop a financial strategy for using global nursing strategies to increase fiscal responsibility. Include the positive and negative financial impact of bringing foreign healthcare providers into a financial organization. Examples such as physicians, nurses, and therapist should be evaluated and assessed for financial viability.
Healthcare institutions may be faced with fiscal constraints at some point in their growth process therefore necessitating austerity measures and sound business practices that will help minimize costs and enhance operational and financial efficiency inside the hospitals (Dong, 2015). Many questions arise as to how the financial management culture in healthcare institutions can influence care quality. This research paper attempts to identify the global nursing strategies that would increase financial responsibility in healthcare institutions as well as the financial impact that hiring foreign healthcare providers into the financial organization has.
According to Dong (2015) there is a significant statistical relationship between the financial performance of a…… [Read More]
Financial data provides a lot of information about a company, and the ability to compile and understand this information is one of the core skills of the financial analyst. The financial analyst adds value to an organization, therefore, by bringing this skill. The analyst has the ability to understand financial data, to gain information and insight from it, and then communicate that insight to management. Analysts are trained in financial data, and they have methodologies that help them to understand financial data. This is a skill that most people have no training in, and even fewer have experience in, but it is a skill that can provide useful information to management about the company's performance. When management acts on that information, the value of the financial analyst becomes evident.
There are a number of ratios that a financial analyst uses to evaluate the financial performance of the company. The…… [Read More]
Strategic and Financial Analysis: Case of Apple
Apple Inc. is a U.S. multinational company specializing in designing and selling different types of electronic products that include computer software, personal computers, and range of hand-held electronic gadgets. Over the years, Apple has grown to be an iconic designer of consumer electronic products. Established by Steve Jobs in 1976, however, Apple's business nearly collapsed in1980s because of the stiff competitions from other companies. In 1990s, Apple was forced to design an innovative personal computer and entered the fragmented DM (digital music) industry using a diverse set of a distribution channel. (Apple, 2014).
In the last decades, Apple has recorded an unparallel success in digital music players, and iTunes software. Apple uses a sophisticated distribution strategy to achieve competitive market advantages in the electronic industry. resently, Apple sells its products globally through the retail stores, and online stores, which assist the company to…… [Read More]
Introduction & Description of the Business
The Public Service Enterprise Group (PSEG) is a publicly-traded utility company, incorporated in New Jersey. The company has two subsidiaries, those being PSE&G and Power. The former is a franchised public utility in New Jersey, a provider of "gas and electric commodity service," with a range of customer types including residential, commercial and industrial. Power integrates nuclear, fossil and renewable generating asset operations and wholesale functions. It sells in the wholesale and commodity markets both in the spot market and in the futures market (PSEG 2014 Form 10-K, 2014). PSEG also has a subsidiary on Long Island in New York, operating the Long Island Power Authority's transmission and distribution system (Ibid). Transmission and distribution are two of the major businesses that the company is in.
In terms of the electric and gas distribution business, PSEG has 2.2 million electric customers and 1.8 million…… [Read More]
UXB2B: Chinese Taipei
The case of UXB2B speaks of a rather new technological procedure and application to resolve e-commerce issues related to internet security and e-finance logistics for trading partners in the supply chain industry. However, I digress. UXB2B is an e-commerce company that specializes in the development of e-business applications designed to enable supply chain integration through a streamlined and secure software link. Leadership Information: The CEO of the company has a research background in national defense and an educational background in computer and information science
The software, UXB2B had e-everything as its selling point. For example the software enabled eSales, eProcurement, and eFinance; collectively called "SaaS (Software as a Service)"
SaaS met the requirement that UXB2B sought to bring to the market place. The software enabled e-communication amongst all stakeholders to exchange information to open and close transactions via an interconnected system. t first glance, success in the…… [Read More]
Southern New England Telephone, a subsidiary of SBC Communications, Inc.
The difficulties in evaluating the relative success or failure of a company in the telecommunications industry, or any government-regulated service, such as telephone service, are numerous. How does one evaluate the overall success of the company, in relation to financial and legal difficulties, even to outright failures of its subsidiaries on a local level? Also, how does one unravel the legal snarls that plague the communications industry in a climate that often fluctuates from state to local ordinances? "Pity the Regulator," wrote The Economist in 1997, when the Internet and communications snarl was just beginning to grip the nation and the world. However, when writing the recent history of Southern New England Telephone, one might want to extend pity to this subsidiary of SBC as well.
Over the course of the last several financial quarters, there has been…… [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]
Financial Statement Analysis
In this particular essay, I undertake the financial analysis of five companies, all of which are set in the retail industry. Three of the companies, Tesco Plc, Sainsbury's and Wm Morrison Supermarkets plc are some of the largest food retailers in the United Kingdom. Ocado which is the fourth company is the largest online food retailer in the whole world and lastly Crawshaw Group PLC is also in the business of operating a chain of retail food stores. Every company will be discussed individually and it will encompass information regarding the history of the company, the products and the services, the consumers and also other information.
Tesco Plc is a company that is based in Britain and is the largest food retailer in the United Kingdom. It is one of the biggest retailers in the globe as it is the third in position in the retail industry…… [Read More]
Financial statements are essential in measuring and assessing the real financial strength and position of a company. These financial statements provide quantifiable data for reports and help an individual to obtain an understanding of a company's forthcoming forecasts and risks (Weygandt et al., 2008). The purpose of this paper is to review the financial statement of Doctors Hospital in the two years 2013 and 2014 and analyze these financial statements and its financial well-being. In addition, the paper will outline the role played by advanced practice nurses in the financial welfare of the organization.
Implications of Economics for Advance Practice Nurses. The ole of the Advance Practice Nurses in the Financial Wellbeing of Healthcare Organizations
In general, very minimal studies have been undertaken in the United States regarding cost effectiveness and economic impact of primary care delivered by advanced practice nurses. esults from different research studies indicate that, on the…… [Read More]
Financial continuity Strategies for NGO Boards
Non-governmental organizations are often caught up in financial woes that make it difficult for their operation despite having a strong mission program. Discussed are professional financial continuity strategies for NGO boards to control the financial performance of their organizations in a timely manner. Firstly, ensuring an effective operation of the board. Their functions are executed through complementary and supervisory operations, and legal obligations on their performance in the organizations structure (Finkler et al., 2016). The board’s primary role is to represent the interests of the stakeholders and those of the organization. Their functions include administration of the organization, financial oversight, and making decisions on policy.
Their governance responsibilities includes approval of annual budgets, preparation of business plans, policy formulation and implementation, strategic planning, and other administrative controls. Internal controls should be exercised not give room for fraudulent activities. Boards should ensure the organization abides…… [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]
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]
There are a number of financial ratios that will be valuable to a small business person. A small business is often concerned with cash flow, so ratios that are the most concern fall into three categories -- liquidity, profitability and efficiency. Liquidity ratios measure the ability of the company to meet its upcoming financial obligations. These ratios are important for ensuring that there is enough cash on hand to pay the bills. The profitability ratios are important because the business will be more successful if it is able to manage its margins. Efficiency ratios are concerned with how fast items like inventory or accounts receivable are turned over. These ratios are a direct reflection of the company's working capital, and improvements in these ratios improve the working capital flow.
These ratios are going to be slightly different from those that a large corporation values. The large corporation actually…… [Read More]
Net income available to common stockholders
Addition to retained earnings
Calculated Data: Operating Performance and Cash Flows
Net operating working capital (NOC)
Total operating capital
Net Operating Profit After Taxes (NOPAT)
Net Cash Flow (Net income + Depreciation)
Operating Cash Flow (OCF)
Free Cash Flow (FCF)
Calculated Data: Per-share Information
Earnings per share (EPS)
Dividends per share (DPS)
Book value per share (BVPS)
Cash flow per share (CFPS)
Free cash flow per share (FCFPS)
LIQUIDITY RATIOS (Section 3.2)
ASSET Management RATIOS (Section 3.3)
Asset Management ratios
Days Sales Outstanding…… [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]
he only observation that could be made here is that one would expect a larger proportion of the total expenses to be allocated to research and development, given the fact that this is such an important part of Microsoft's activity and essential in order to obtain a competitive advantage on the market.
Asset and Capital Structure
Cash and cash equivalents
otal fixed assets
he asset structure at Microsoft reflects some of the particularities in the industry, notably the fact that the inventory levels tend to be quite low, as compared to the other assets. his means that the I industry is not one supporting production on stock. At the same time, the value of the total fixed assets is significantly high, which can be partly explained by the size of the company and the investments in land, buildings and equipment.
Part III…… [Read More]
3.2.3 Portfolio Diversification of Investment in Global Property Markets
ecause the global property markets are affected by globalization and specific country / regional factors, means that the overall amounts of risks will vary, the most notable include: transparency and efficiency. Where, each country / region has different on laws and regulations pertaining to the real estate markets. This means that the risks in a number of different markets will depend upon specific market conditions themselves, reflecting these two factors. To protect themselves against these kinds of risks, many investors will often seek to diversify their portfolio. Diversification is: when you are investing a number of different asset classes in real estate, across a variety of countries / regions. The idea is that if a risk occurs in a specific country or region, the other areas that you are diversified in will protect you against the severity of the declines. For…… [Read More]
(Jabal Omar Development Corporation 2010)
Since 2008, the real estate market in Kuwait has been continually declining. The reason why is because the economy was largely depending upon oil revenues. However, in 2010 the sector began witnessing an increase in prices. This is because of the Kuwaiti government was aggressively promoting the tourism industry. As developers are expecting a strong increase in foreign direct investment, due to the governments push to expand the sector. As a result, holiday and residential areas in Kuwait are continuing to boom. (Finkelstein)
In the housing industry, there are large numbers of shortages that are affecting prices. What has been happening is the residential sector has been facing restrictions over the last several years, surrounding building permits. As the government was slow to endorse them, which created a rush on new areas that were approved for development. At the same time, the government has…… [Read More]