Debt Reports Samples For Students

Solvency Ratios:

These ratios indicate the long term solvency of the company, i.e., if the company will be able to honor its long term obligation. Furthermore, it also helps in understanding the capital structure of the company. Below discussed are the solvency ratios of Debenhams Inc:
i) Debt to Equity: Debt/ Equity
(Debenhams, 2013)
ii) Interest Coverage Ratio: Operating Earnings/ Interest Expense
iii) Debt to Capital Employed Ratio: Debt/ Capital Employed (Mckeith, Collins, 2013)
*Debt= Total Debt
*Capital Employed: Total Assets- Current Liabilities

Analysis:

The above analysis of the company using Solvency Ratios indicates that, over a year, ...

Financial ratios are one of the tools that are applied in financial analysis. This is because they help an analyst in creating the overall image of an organization. This is achieved since the ratios provide insight on various aspects of the organization that includes profitability, cash flow ratios, debt ratios and profitability ratios. These ratios are instrumental in ensuring that the analyst understands the financial soundness of the firm before investing in it (Shim and Siegel, 2000). Although these ratios face various shortcomings, they are essential in providing a bird’s eye view of the company from an analytic angle ...

Introduction

The report is prepared with the objective of conducting the financial analysis of Domino Pizza Enterprise Ltd that is listed on Australia Stock Exchange under the ticker symbol of ‘DMP. The report carries great significance for us to attain the knowledge of financial analysis and how the financial ratios and other multiples can affect our investment decision relating to a company. To simplify the analysis and to facilitate the reader, we divided the report in multiple sections relating to ratios, intrinsic value calculation and calculation of cost of capital.

i)Liquidity Ratios:
i)Current Ratio: Current Assets/ Current Liabilities
2012:74/52= ...

Profitability and Credit Risk Analysis: Apple Inc. and Owen Cornings Inc.

The report is based on conducting an in depth analysis of the profitability and credit risk of the two US based public listed companies, Apple Inc. and Owens Coming. For the purpose of conducting profitability analysis we will be having an overlook of how the company reaches to its bottom line profits and what income and expenses are deemed to reach at that figure. In addition, we will be analyzing multiples such ROE(including Dupont), operating margins, etc. for each company . On the other hand, as for credit ...

Britvic Company Financial Analysis:

Introduction:
With operations in prominent countries of Europe like the Great Britain, Ireland and France, Britvic is renowned as one of the leading soft drink companies in the whole of Europe (Marketwatch.com, 2014).
The Company has been able and successful in setting up a definite portfolio across the markets where it operates. The brands of the Company that have captured its own market include Robinsons, Tango, J2O, drench, MiWadi, Ballygowan, Teisseire and Fruité. The Company also produces and sells famous drinks of PepsiCo Company such as Pepsi, 7UP and Mountain Dew Energy, in Britain and Ireland, as per ...

This is an auditing paper showing how to calculate the various financial ratios and how to interpret and analyse information using the. It also shows how to evaluate a company’s financial statements during an audit.
Q1
Current ratio is a ratio that measures the level of liquidity of a firm that allows it to meet debt obligations. A good current ratio should be above one showing current assets are more than the debt obligations. As far as our case study is concerned the current ratio is proper but it has a declining trend which is alarming as to the state ...

Introduction

Kindred Healthcare Inc. is a company that provides healthcare services through its transitional care hospitals, rehabilitation hospitals and assisted living facilities, among other healthcare services across the United States. This paper gives a detailed financial and operating analysis of the company to assess its liquidity, profitability, operating efficiency, as well as solvency.
1. RATIO ANALSYS
a) Liquidity ratios
The current ratio of Kindred Healthcare for the year 2013 was 1.510 implying that it had adequate current assets to repay its current liabilities. Although this value is less that the ideal 2:1, the organization’s liquidity is strong. The ratio ...

Part 2:

Introduction
The Capital Structure Propositions proposed by Nobel Laureates, Franco Modigliani and Merton Miller has a significant relevance even in the modern day financial theory. The propositions proposed by them are popularly known as MM Propositions which they proved under restrictive set of assumptions to counter the traditional approach of capital theory which states that there is always an optimum mix of capital structure for a firm that assists in attaining maximum value for it. The difference in the traditional approach and MM Propositions will be discussed in detail in the succeeding sections, while now we will explain the propositions ...

The report is being made with the objective to understand the ongoing trend in J Sainsbury Plc from 2009 till 2013. However, to facilitate in-depth analysis, we have bifurcated the report in two parts with Part 1 dealing with trend discussion relating to financial structure, investing decisions and change in dividend payments while ach of the discussion will be validated using the financial notes or through calculation of ratios. On the other hand, Part 2 is related to discussion over the change in remuneration package of the executives since 2009-2013 and how it related to the agency theory.

Part 1: Trend Analysis using Ratios:

Change ...

About the report:

In this report, we will analyze the financial performance of Double Ace Industries using the tools of ratio analysis where along with calculating six ratios under varied sections, we will also compare the results with the industrial average. Each ratio calculation will also be followed by an in-depth analysis about ongoing financial situation and with appropriate recommendations, if required. We are sure that by the end of this report we will be having a sound knowledge about the financial position of the company over the year and how its performance is comparable to the industrial average.

Ratio Analysis

i) Quick Ratio
Formula: ( ...

- Investment analysis of the Emirate Airline
- The University
- [Instructor’s Name here]
- Table of Contents
- Financial highlights analyses, 2010-2014 .. 02
- Horizontal analyses 02
- Vertical analyses 04
- SWOT analysis .. 04
- Cash flow analyses, 2010-2014 . 06
- Cash flow statements analyses 06
- Profitability position 08
- Liquidity position 08

Horizontal analyses
The four-year revenue growth of Emirates Airlines was 90.4 percent, or an average annual growth of 22.5 percent. This growth performance is moderately high and impressive ...

M2 Group is a large wholesaler of communication services in Australia. The group has its presence in Australia, New Zealand and Philippines. It is a large employer having more than 3500 employees worldwide. Recently, the company has made acquisitions in energy and utilities sector to diversify and hedge its position. It has also bought assets in communication sectors that are believed to have a high growth in the future. All of these had an impact on the overall financial structure of the company which is going to be discussed in the coming parts of this paper.
Managerial Inertia theory is an ...

Introduction

Capital structure is a blend of debt financing and equity and is a crucial factor in the organization’s valuation. The levels of debt and equity financing affect the cash flow and risk hence the amount that investors would be willing to pay for a company. Thus, Capital structure is of concern and matters to investors and value because it affects the cost of an organization’s capital. On the other hand, the organization’s attraction to investors is based on a number of factors including its risk management, competitiveness and performance in terms of return to equity. (Damodaran, 2010) In that view, ...

Introduction:

In this report, we will conduct an analysis of the financial leverage of the company and will also comment on the recent trends over the financing activities of the company. Overall, an extensive discussion will be made relating to the financial structure of the company and also the comparable firms.

Firm’s Leverage Policy: In comparison to Industrial Averages

For the purpose of evaluating the trend in the leverage policy of the company, we will be calculating the solvency ratios that will include analysis of the recent trend in debt management ratios and interest coverage ratio. In addition, we will also comment over the management’s discussion over ...

Part A:

Vertical Income Statement Analysis:
a)Trend in Net Income:
Referring to the above conducted vertical analysis of the company, we find that over the years, the net profit margins of the company has improved, although a marginal declined was witnessed during the year 2013. By the end of the financial year of 2011, the company had Net Profit Margin of 13.22%, which later increased to 15.99% during 2012. This significant improvement in net margins was possible because of reduced percentage of proportion of COGS to total sales which during 2012, decreased from 47.16% to 46.70%. Important to note that ...

Optimal leverage analysis

The Toll Holdings Limited is an Australian company whose operations are majorly in transport on roads, sea, rail and air. The company, in its operations, requires to be financing at all times. Sometimes the profits the company makes are not enough to finance all its projects. It, therefore, calls upon the company to think of a better way to finance its projects. One of the ways of financing the projects is through taking of debts. These debts are supposed to be scrutinized by both the company and the lender. Some debts might have some negative implications on the company and, ...

__ March 2014

Summary:

- What the Paper is about
The paper is about John R. Graham and Campbell R. Harvey‘s analysis of their survey regarding the current practices of corporate finance. It looks into three main aspects: capital budgeting, cost of capital and capital structure :
The objectives of the research study are: (a) to serve as basis for development of new corporate finance theories, or to modify/nullify existing ones; and (b) for practitioners to learn from the findings, especially from cases where academic theories were not applied completely.
It is differentiated from earlier surveys conducted in ...

Macroeconomics is a vast field of study that deals with the aggregate behavior of the economy. The term, macroeconomics, is a composition of two words: makro, a Greek prefix, meaning large, and economics. Putting it all together, the term is used to refer to a special discipline of economics that architects the art of structure, behavior and decision making of the aggregate economy, rather than studying separate individual units. Here, the question of interest is how can one study the structure, behavior and decision making attitude regarding the completely magnanimous economy, involving many different sectors. However, the answer to this complex question appears ...

Business Model

The following graph shows the company’s performance in terms of earning revenue and the profit.
During the first two years, the company will incur a loss which will come down to its minimum by the end of second year. The loss will be pretty much as above $98,000 approximately but with the growth in revenue, it will come doen to just ocer $2,000 by the end of the second year. From the third year onwards, company will be earning solid returns with the profit for the fifth year amounting to approximately $93,000.

Break even analysis

The break even ...

Ford Motors Co: Financial Analysis

Property, Plant and Equipment
The property, plant and equipment valued at $ 24813 which shows an increase of 11 % as compare to 2011. Property, plant and equipment includes land, buildings and manufacturing plants and other machinery and tools and other assets that are used by the company in their routine business operations. Ford Motors Co. records all its assets at cost net of depreciation and other impairments. The company has a policy of capitalizing newly acquired assets when they intend to utilize them for longer periods which is usually more than one accounting year. The cost of maintaining assets and ...

- The interest rate required by investors on a debt security can be expressed by the following equation: Interest rate = RRF + IP + DRP + LP + PRP + CRP. Define each term of the equation, and explain how it affects the interest rate.
RPF stands for real risk-free rate. Real risk-free rate is the minimum percentage of return required by investors identified for the moment of calculating the interest rate. RPF identifies maximum value of the risk that could be accepted. In practice, risk-free rate is bound to a three-month US Treasury bills. There is directly proportional to the interest rate and the ...

Problem Definition

Paqua Group is a European – based organization, with subsidiaries activating in seven countries in Central and South – Eastern Europe, specialized in debt collection and debt purchase. Being a relative new player on the collection market, the company is seeking new opportunities for positioning as one of the strongest competitors on this market and in the same time it faces the challenges imposed by the economic and financial climate. As such, due to the economic crisis and the continuous financial and economic instabilities that define the 21st century Europe, the company’s activity is facing challenges, as well as opportunities to grow. ...

Capital plan of Apple is the issuing of debt to fund $100 billion in share repurchase plan for the first time and the company will pay high amount of dividend till the end of 2015. Company will pay a dividend in every quarter till the end of 2015 with a growth rate of 15% each quarter to $3.05 a share. Annual payment of dividend would be $11 billion (Apple).

The Meaning of Dividend policy:

Some or complete part of net income which is paid out to shareholders is known as dividend. It is paid in the form of cash or shares. The decision of paying the dividend ...

Brief Background to the Case

The current case about Medical Temps Inc. revolves around the issue of capital structure. Basically, the owners and the financial advisors are having an argument about the future capital restructuring plans for the Medical Temps Inc. Tiffany Radcliff, the owner of the company, believes that the company will experience not zero, but slowed growth in the upcoming years, due to external factors, such as a significant decrease in demand for temporary nursing workers which is what the firm is all about; a significant increase in firms offering similar services at competitive price ranges; and other indirect factors leading to two factors ...

Introduction

In an organization, the corporate level of management carries out the growth strategies of the organization. Growth strategies are employed to seek growth, sales, profit and market share or any other objectives the organization may have set. The growth strategies are expected to result to an increase in the organization value. Some of the growth strategies which may be implemented are vertical integration, horizontal integration, and diversification, take over, mergers and acquisition, strategic alliance and joint ventures. The strategies discussed leads to an increase in the market share of a firm. The strategies are also adopted to help the firm ...

In terms of liquidity, the company records better results as compared to the industry.For instance, the company has a higher current, quick and turnover ratios, and even working capital ratios as compared to the insustry. Additionally, in all these ratios, the company seems to have surpassed the recommended economic threshold.

Profitability ratios

In all the available ratios, Apple seems to have materially better ratios than the industry. Both the return on assets, return on equity as well as the net profit margin indicates that the the company is performing much better than the industry.
This is mainly because of the fact ...

The prospects of Greece as a country with a strong economy continued as a reality since independence in 1974 and thanks to the industrial revolution of the 19th century among other factors, its local currency, the Drachma was exchanged to Euro at the rate of 340.75 at its point of Euro currency adoption in 2001. Its relevance as an advanced economy with a very healthy GDP earned it a place as a foundation member of international organisations like OECD (Organisation for Economic Cooperation and Development) and BSEC (Organisation of the Black Sea Economic Cooperation). The tide was continually good; GDP was on the rise and Greece ...

The understanding of the financial ration helps the organization to evaluate the effectiveness and efficiency of the company. In order to analyze the financial position of the company, the financial ratios are categorized into five distinct categories. These categories include liquidity, leverage, profitability, valuation and efficiency. These ratios are significant to the managers within the organization, the firm’s creditors and the shareholders who use them to evaluate the financial condition of the firm. Below is the financial ration analysis of Lexmark Company categorized into five types.

Liquidity ratio

In this category the liquidity ratios includes current ratios, quick ratio and ...

Introduction

Berkshire Hathaway Inc. is a major American holding company based in Omaha. Berkshire Hathaway owns several subsidiaries, which deal in different business activities such as property ownership, reinsurance, casualty insurance, energy, finance, utilities, manufacturing, retailing and services. Some of the company’s subsidiaries are major players in different sectors of the economy. For example, GEICO is one of America’s top auto insurers. Warren Buffet acquired the majority shareholding of the company in 1970. Currently, Buffet is the serving CEO and chairman of Berkshire Hathaway Inc. Warren Buffet has acquired several companies over the years and turned them into successful ...

Introduction

Capital structure management is a crucial aspect of effective cost control. That is because the structure determines a company’s cost, hence determining its performance and ability to create wealth for its shareholders. In that view, this analysis seeks to demonstrate how the structures influence companies’ performance as well as decision making. To achieve that, the analysis evaluates three companies in Hospitality industry. In that respect, this report begins with an overview of the companies’ debt structure and how it influences the companies’ cost of capital. That is followed by overview of how the companies’ long term financing polices as well ...

Introduction

National debt is a controversial issue, giving rise to debates among politicians and economic analysts. The survey was done on college and university students, about their view on the national debts and their influence on the economy and distribution of income. The survey also aimed at gauging the students’ stand on how national debt impacted on the main sectors in service and commodity markets. Moreover, the survey mainly used close-ended questions to source answers from the audience. However, open-ended questions were rarely used. Apparently, close-ended questions include questions which allow the audience to provide their opinion about an issue ...

(Excel Maritime Company)
1 Introduction
According to Albertijn et al. (2011), the maximization of the shareholders’ wealth depends on the type of capital structure employed by the company. As defined by Ali, Salleh and Hassan, (2010), the capital structure is how an entity funds its operations and expansion using the various sources of funding available in the market. The capital structure of a company can comprise of equity, debt or a mix or both. The maritime companies listed on the New York Stock exchange can either be funded by equity, debt or a mixture of debt and equity based ...

Introduction

Primarily any business' aim is to remain in business while maximizing the welfare of its shareholders. To start and continue its operations without hitches, companies usually require funding. The funds needed are either short-term or long-term (Carey and Essayyad, 2015). Sources of short-term funding include overdraft, short-term loan, trade credit and lease finance. These sources are repayable within a period of one year. Due to the volatility in the interest rates associated with the short-term funding, they represent high risks for the borrower (James, 2000). However, they are less expensive and more flexible (Chahyadi, 2000)
Long-term funding, on the ...

1 Introduction
As noted by Davies and Crawford (2011), firms with good financial records are attractive to both current and potential investors. However, one critical factor considered by the potential investors before investing in a company is its creditworthiness. A company may record high revenues, but its creditworthiness can be doubt. For the company to be creditworthy, it must significantly reduce its debt funding through the maximization of the internal sources of finance and equity (Delen, Kuzey and Uyar 2013). Additionally, the company’s management must ensure that the capital structure of the company maximizes the shareholder wealth. This ...

Viability Report on JV

There lies a distinguishing characteristic of Multinational Corporation (MNC) in contrast with a collection of independent national firms dealing at arm’s length is, its ability to move money to its affiliates through internal transfer mechanism. In multinational financial system there is transfer of goods, services, technology and capital.
In the interest of facilitating stronger sustainable profitability and growth, decisions on resource allocation in organizations require a systematic, analytical and though approach as well as sound judgement. Project and investment appraisals and capital budgeting which involves assessing the financial feasibility of a report should use Discounted Cash Flow(DCF) analysis as a supporting ...

Executive Summary 4

Introduction to Bovis Homes Group PLC (BVHMF) 5
Objectives of this Report 5
Methodology – Three-Year Financial Performance Analysis through Ratios 5
Liquidity Ratio Analysis 6
Current Ratio 6
Quick Ratio 7
Overall Liquidity Performance 8
Debt Management Analysis 8
Debt-to-Equity Ratio 8
Interest Coverage 9
Overall Debt Management Analysis 9
Analysis of Operating Efficiency 10
Receivable Turnover (in days) 10
Inventory Turnover (in days) 11
Fixed Asset Turnover (in times) 11
Overall Efficiency Management 12
Analysis of Profit Generation Capacity 12
Net Profit Margin 13
Return on Equity 13
Valuation Using Forecasted Dividend Growth Model 14
Investment Decision – Conclusion ...

BUSINESS FINANCING

Introduction
Business owners and managers seeking financing encounters an essential decision regarding choice of whether to borrow money or to make use new equity capital. Given that equity and debts have very varied characteristics, each of them has different effect on cash-flow, earnings, and taxes as well as on balance sheet. They also have different impacts on any company`s dilution, leverage as well as a host for other financial metrics by which companies are measured. Lastly, each business financing options presents a different kind of relationship in relation to the financing source. Thus, a company`s plan on ...

Introduction

This report aims at evaluating the financial statements of Xstrata plc. In light of its corporate objectives and the industry practises and performance. To achieve this, this report provides a brief history of Xstrata and analysis of sources of finance, gearing and dividend policies. This report primarily relied on Xstrata financial statements for the last five years; 2007,2008,2009,2010 and 2011.

Xstrata Plc. is a multininational company in the minning industry which is listed in the London Stock Exchange and is part of the FTSE 100 index. It has its headquarters in Zug, Switzerland, however, it has another registered ...

About the report

The report is based on our assistance given to Wheel Industries where we have analyzed the long term investment opportunities available with the company using the techniques of capital budgeting. To facilitate better understanding for our readers, we have included all the calculations within this report while every calculation is explained comprehensively.

Project Details

Wheel Industries is considering a three-year expansion project, Project A. The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per ...

Part. 1 Concept introduction and analysis

Introduction
This report presents a proposal for a restaurant establishment in Clarke Quay in Singapore. The report provides an overview of the proposed location and the market trends identifying the suitability of the proposed concept. To achieve that, the proposal involves analysis of the target market and the financial prospects of the business deciding on whether the model is viable.

Restaurant concept

Generic strategy
The restaurant will have a premium pricing given the target customers it will be serving in Clarke Quay. The customers are mainly professionals and visitors with substantial income to afford the premium price for the food items ...

Company Overview

Sony Corporation is among the largest manufacturers of consumer electronics products in the world. The company engages in the design, development, manufacture, and sale of various types of electronic instruments, equipment, and devices for consumer, industrial, and professional markets. Primarily, the company operates in Asia, Middle East, Africa, Europe, and America. The company also distributes gaming software and hardware ('Sony Corporation SWOT Analysis' 2013, p. 3). The company does the distribution, manufacture, and broadcasting of image-based software such as motion picture, television products, and recorded music. The company’s manufacturing facilities are mainly located in Asia, but the company ...

Part A:

Importance of Capital Investment Decision
The university has now reached a stage where it cannot procrastinate the decision to build a new building and replace the existing one, which has now turned expensive to run and is also imposing a poor environmental performance. Therefore, it has now turned crucial for the university to replace the old building with the new one not only because the existing facility impedes the profitability position of the organization, but is also harming the environment and is thus sending a negative signal amongst the community.
Henceforth, the university should proceed with the appraisal of ...

The FA

The FA i.e. The Football Association refers to the English football’s governing body, which was established in 1863. Ebenezer Morley is considered the father of The Association. The activities of the company include overseeing, promotion and development of the game at different levels like The FA Cup and England International Teams. The activities also include broadcast and media rights, sponsorship, licensing, merchandising along with sales of tickets (The Bloomberg, 2017).

Financial Position of the FA

Current position with respect to financials of the company as on 31st July 2015 provided an overview of that the company is continuously striving to generate commercial revenues ...

Analysis of LaSalle Hotel Properties

Introduction: Importance of ratio analysis
Financial ratios are important in analysing the financial performance of an organization. The financial performance is a key factor in the management of the organization. Financial ratios simplify the financial statements such as the income statement hence managers can easily determine whether the organization is profitable or not. For instance, profitability ratios such as the net profit margin indicate whether the organization is profitable or not. Managers can then identify areas of weaknesses and take corrective actions to improve the profitability of the organization. They are also used to assess the liquidity of an ...

About the paper

The paper is commissioned to conduct financial analysis of UK based retailer, Morrisons PLC. As part of this analysis, we will be using the raw financial figures for the year 2014 and 2015, and will take the assistance of ratio analysis to unearth the financial trend in the company. In addition, we will also calculate the intrinsic value of the stock using the dividend discount model, and will then culminate the paper with a final conclusion on the financial standing and stock valuation of the company.

About the company

Founded in the year 1899, Morrisons Supermarket is a UK based food retailer. ...

Analysis Tools

Analysis Tools
The aim of this financial and analysis report is to evaluate the performance of Ford Motors as one of the companies enlisted in Fortunes 500.

Accounting for assets
The Ford’s net property is valued at a cost, less the accumulated impairments and depreciation. The company capitalizes new assets when the management expects to utilize such an asset for more than 12 months. The company also expenses the repair and maintenance costs as they occur. The cost of depreciation is calculated by the use of the straight-line approach over the approximated useful asset life. The straight-line method ...

Valuation:

The information provided in the case as well as historical financial has been used in the excel model to place a value of the business. The excel model provides 3 valuation methods, which are DCF valuation method, market multiple value based on number of physicians and lastly, market multiple value base on revenues. The table below shows the results of the valuation carried out on Akron Family Practice.

Differences in valuation:

Yes, the valuation will depend on who is going to make the acquisition. This is many because different acquirers of the practice may have different intentions. From the preliminary work done by a ...

Arguments in favour of presenting redeemable preferred stock as a liability

According to SFAS 150, a mandatorily redeemable preferred stock should be reported as liabilities in the statement of financial position. This is unlike other types of preferred stock that are reported as equity in the stockholders’ equity section of the balance sheet. There are several arguments for the presentation of preferred stock as equity. Below is a discussion of why redeemable preferred stock should be presented as equity in the balance sheet.
Firstly, the definition of redeemable preferred stock shows that it is more of equity than debt. It is defined as preferred stock that allows the issuer to ...

Financial Statement Analysis

Part 1 – Financial Analysis
One of the methods to evaluate the financial performance of a company is to perform ratio analysis. By calculating the ratios for Soule Company for 2013 and 2014, we can not only conclude on the current situation in the company’s finances but also understand its performance in dynamics.
The analysis starts with the current ratio. The company’s current assets slightly increased in 2014 comparing to 2013 but so did its current liabilities. Therefore, the current ratio in 2013 was 1.66 and it decreased in 2014 to 1.5. Nevertheless, there are no liquidity issues ...

Abstract

The following report describes different sources of capital a company may use in order to finance its operations and investing activities. In particular, it analyses debt financing (bonds and direct bank loans) and equity financing (Venture Capitalist Investments, Initial Public Offering, Seasoned Equity Offering and Rights Offering). Report also analyses recent IPO of Manchester United Football Club at New York Stock Exchange as a practical example of raising capital.

Sources of Capital

The impact and the importance of financing in modern business world could not be underestimated. Globalization and increasing competition have forced companies to explore new markets and offer new innovative products. According ...

Part 1

The company I have chosen is Starbucks. Using three bonds; I calculated the cost of debt by taking average of the coupon of the three bonds and then adding the tax effect. The cost of debt came out to 2.40%.
The company does not have any preferred stock in its capital structure. For calculating the cost of equity, I have used three methods, the risk premium method, the dividend discount model and the CAPM equation.
Risk Premium approach involves adding an equity risk premium to the bond yield (Boundless). The bond yield was calculated by taking the average of ...

Evaluation of Corporate Performance

Evaluation of Corporate Performance
Apple Inc. is one of the most innovative and the famous corporations in the world today. Apple Inc. is the leading manufacturers of mobile phones, tablets, laptops and other electronic devices. However, their product ‘iPhone’ is the leading smart phone brand as compared to their other products. Apple Inc. was founded in the year 1976 and incorporated in the year 1977. The main aim of the company was to make and produce the personal computer for their clients. Apple Inc. is the second largest company in the smart phone industry on the basis of ...

Abstract

This paper seeks to demonstrate the analytical process of determining insurance metrics by evaluating the effects or risks of location (country), type of industry and number of years on key financial metrics. This paper uses the Analysis of Variance approach to determine the effects of the above-mentioned variables on key financial metrics and identifies where these variables have an impact and where they do not. For simplicity, certain assumptions have been taken. These include the exclusion of the possible effect of sampling errors and the effects of other variables that have not been identified. In doing so, this paper ...

Introduction

This paper seeks to conduct an analysis for the financial performance of Lexus in relation to other industry competitors; Jaguar, Mercedes, Porshe and BMW. In order to arrive at objective results, the analysis will compare various financial and performance metrics for the businesses. It is a purely objective analysis that will be based on the figures obtained from the annual reports of the companies.

Return on capital employed (ROCE)

Return on capital employed is a metric for a company’s profitability and the effectiveness of its capital employment.
ROCE = Profits before interest and tax/Capital employed.
A significantly huge amount of ROCE is a clear ...

The United States of America Maritime company under consideration is the company Matson, Inc. The most important companies of maritime transport of the world have headquarters outside the United States of America. A.P. Moller-Maersk is the most important company in the world according to its annual transport capacity of 2.8 million twenty-foot containers, its headquarters are in Copenhagen, Denmark. The second company is Mediterranean Shipping Company from Geneva, Switzerland with a capacity of 2.4 million twenty-foot containers. The third company is CMA CGM from Paris, France with a capacity of 1.6 million twenty-foot containers (Moggomcom, 2015).
Matson Inc. is ...

Executive Summary

The report unearths the past five year financial performance of Walmart Inc. using the tool of ratio analysis. Our analysis indicated that over the years, the liquidity position of the company had been fairly stable and witnessed a surge during the latest year. However, the result were not appreciable when compared to the industrial averages. In terms of profitability and solvency, Walmart have shown promising trend with appreciable run both in comparison with the industry and at intra-company levels. As for the efficiency and market ratios, the trend again provided a mixed review, where miserable inventory turnover were offset ...

Profitability ratios

Gross profit margin =Gross profit/Net sales
The formulae used in the calculations are listed in the appendix. ("Growth, Profitability, and Financial Ratios for Myer Holdings Ltd (MYR) from Morningstar.com," n.d.)

Commentary

- Profitability

Generally, profitability ratios give someone an idea on how the company is utilizing resources to make the profit.

Myer has a lower gross profit margin compared to David Jones. The gross profit, net profit margins for Myer decline over the two-year period, 2012 and 2013. During the same time, David Jones improves marginally on the margins. This is an indication of changing fortunes in the industry, where one company gains as the other declines.
The two companies have a similar tax environment as tax expense ...

Income Statement:

The income statement reports the revenue and expenses of the firm over a period of time. The income statement is sometimes refered to as the statement of operations or Profit and Loss Statement. The income statement relies on the equation:

In other words, Income Statement serves the purpose of providing the investors and other users of financial statements with most appropriate profitability of the entity net of expenses incurred by the company. In an elaborated manner, income statement helps an investor to assess as how the business has performed by giving a summary of how the business incurs its revenue and ...

Financial management

In large organizations, ratios are usually used for benchmarking as well as for effectively analyzing the performance. Both large and small organizations are usually interested in the profitability, efficiency and the liquidity of their firms. Profitability ratios measure the rate at which organizations are successful in creating wealth. Efficiency ratios measure the capability of organizations in utilizing the company’s resources in earning profits. The liquidity ratios measure the ability of organizations in meeting the short term obligations.

Profitability ratio

The profitability ratio is usually composed of return to asset ratio, net profit margin and gross margin ratio. A small firm ...

Compass Group plc

Compass Group plc is a multinational company dealing with contract food service, support management, cleaning management and property management. It is a British multinational company with headquarter located in the compass house along Chertsey Surrey. Compass Group Company is the largest contract food service organization in the world. The company operates in more than fifty countries across the entire world. The company offers different food services in different locations and institutions such as the hospitals, cultural venues, offshore oil platforms, major sports, schools, offices, mining camps and various universities. The company has several shares and is very active in ...