...Business finance instructor: Philip Bradley Prepared by: Table of Contents Page 1) Company Description……………………………………………….…...... 2 Company background………………………………………..….. 2 Industry analysis………………………………………………..... 2 Products and services…………………………………….…......2 Investment strategy…………………………………….……...…3 2) Market Analysis……………….………………………………................... 3 Direct competitors…………………......…………………………. 3 Financial performance comparison…………………......………3 Growth comparison…………………......…………………...…...4 Trailing total returns comparison…………………......…………4 Ratio comparison…………………......…………………………. .5 Detailed ration comparison…………………......……………5 3) Financial Performance Analysis………………………………………...... 6 Ratio analysis........................................................................... 6 Detailed analysis................................................................. 7 4) Recommendations ……………………………………………………..… ..8 5) Conclusions……………………………………………............................ ..9 6) Reference…………………………………………………………………...10 7) Appendix……………………………………………………………….....…11 Income statement....................................................................11 Balance sheet.......................................................................... 12 Cash flow.................................................................................13 1. Company Description Company background ...
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...which causes an increase its market structure and revenue. It serves more than 200 million customers weekly through more than 8159 retail stores in 15 countries under 55 different brand names. The total sales for the fiscal year 2009 were $401 million for the organization (Wal-Mart, 2010). Financial Data of the Company The business operation of Wal-Mart is increasing continuously, which is causing an increase in the financial performance of the business. The net sales of the company for year 2009 were $401.2 billion, which were 7.2% higher from the revenue in the year 2008. Total operating income of the company for fiscal year 2009 was $22.8 billion, which were $0.8 billion high than the operating income in 2008. The increase in revenue and income caused an increase in earnings per share and dividend per share, which significantly increased the value of its shareholders. The earnings per share were $3.35 and dividend per share was $0.95 for the year 2009. The net income of Wal-Mart for the year 2009 was $13 billion, which were also higher from last several years. The increase in its revenue and income also caused an increase in the total assets and current assets of the company. It also caused an increase in the short and long term liquidity of the business. As Current ratio for the business is 0.9 for the financial year 2009. But increase in total assets reduced the return on assets to 8.4% from 8.5% in previous year. But at the same time it caused an increase in return on shareholders'...
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...ERP Players Comparison SAP, JD Edwards, BAAN Objective • Understand the ERP systems • Identify the major players • Evaluate SAP, J D Edwards and BAAN in terms of market share, revenue, expertise, implementation time etc ERP • Enterprise Resource Planning • ERP refers to automation and integration of a company's core business to help them focus on effectiveness & simplified success. • ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll Major ERP Players • • • • • • • • • • • SAP ORACLE MICROSOFT LAWSON QAD Epicor JD EDWARDS KRONOS BAAN PEOPLESOFT INFO SAP • Systems Application & Products in data processing • It was founded in 1972 by five German engineers • SAP is the world's leading provider of business software • It delivers products and services that help accelerate business innovation for their customers JD EDWARDS • On March 17, 1977 J.D. Edwards was formed, by Jack Thompson, Dan Gregery • JD Edwards is a leading provider of integrated software for distribution, human resource, finance, manufacturing & SCM • J.D Edwards emphasizes on the following three matters • Solution • Relationship • Value • It was purchased by PeopleSoft, Inc. in 2003. PeopleSoft, in turn, was purchased by Oracle Corporation in 2005, and Oracle continues to sell and support Enterprise One and World ERP software line. BAAN • Baan company was founded in Netherlands in 1978 by brothers Jan...
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...integrated understanding of the five basic finance functions? Why has the risk-management function become more important in recent years? Why is the corporate governance function considered a finance function? A financial manager needs to know all five basic finance areas because they all impact his/her job. While the manager’s primary responsibilities may be in raising money or choosing investment projects, the manager also needs to know about capital markets and debt/equity optimal levels, be able to manage risks of the business and governance of the corporation. Corporate governance is a function because a manager wants to act in the best interest of its shareholders. New methods of managing risk have been developed in recent years, and a manager must be aware of these in order to maximize shareholder value. Q2-1. What information (explicit and implicit) can be derived from financial statement analysis? Does the standardization required by GAAP add greater validity to comparisons of financial data between companies and industries? Are there possible shortcomings to relying solely on financial statement analysis to value companies? Financial statement analysis provides information about the company’s financial health, and its strengths and weaknesses. Using standardized GAAP rules does add validity by making comparisons between companies easier. Some possible shortcomings when only basing on financial statement analysis are if a company is in multiple lines of business it may...
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...Module: Accounting and Finance Coursework Assignment 2014-2015 Company: Sports Direct PLC Contents 1.1 Background of Sports Direct 1.2 Comparison of Sports Direct to the Industry 1.3 Comparison of Sport Direct to the Market 1.4 Sports Direct News October 1.1 Background of Sports Direct Sports Direct was founded in 1982 by owner Mick Ashley in Maidenhead, England. The company went in to the London Stock Exchange in 2007 after 25 years of building a portfolio which includes acquiring other sports brands which include Donnay, Lonsdale, and fashion brands such as Kangol while buying out other companies such as JJB Sports and acquiring shares in Blacks Leisure Group, Matalan and of recent times, a 4.6% share in Debenhams (London Stock Exchange, 2014). The companies international expansion started in 2000 with stores opening in Belgium, followed in 2011 with stores in Portugal and 2013 where the company entered the Austrian and Baltic retail markets. Sports Direct current strategy and business model is to: * Identify – Brand acquisitions and property enhancement * Invest – Store portfolio and employees * Develop – Website and m-commerce, enhanced product ranges * Promote – Group owned brands (Source: Sports Direct PLC, 2014) Sports Direct is the UK’s largest sports retailer worth an...
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...How do we finance our business? Financial leverage is appropriate when it is likely that a company will be able to meet its principal and interest requirements. A company with stable profits and cash flows usually is in a better position to use a large amount of financial leverage than a company with volatile profits and cash flows. Companies with predictable revenues and expenses often use a lot of financial leverage. Examples include regulated utilities that can predict revenues, based on approved rate charges, and expenses based on well defined customer groups and demand. Many manufacturing companies also have stable demand for mature products. Expenses are relatively stable because they are linked to stable sales and production processes. Companies with large amounts of plant assets also are able to borrow large amounts of money because their physical assets can be used as collateral for the loans. Capital structure is the way a company chooses to finance its assets and operating activities. A corporation’s capital structure includes common stock and retained earnings. In addition, it may include preferred stock, long-term debt, and short-term obligations. Capital structures differ because the transformation processes of companies differ. Some companies require large investments in plant assets. They may borrow to finance these investments. Capital structures also differ because the financial performances of companies vary. Highly profitable companies often accumulate...
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... II. Profitability/Risk Ratio Calculations and Analysis a. Kellogg (K) i. Risk ii. Profitability b. Kraft (KRFT) iii. Risk iv. Profitability c. Industry Comparison v. Current Ratio vi. Quick Ratio vii. Days Accounts Receivable Outstanding viii. Profitability 1. Return on Assets 2. Return on Common Equity d. Competitor’s ix. Kellogg’s x. Kraft III. Conclusion IV. Appendix I e. Kellogg’s xi. Kellogg’s Annual Report and Form 10-K 2014 3. Income Statement 4. Cash Flow Statement 5. Balance Sheet f. Kraft xii. Balance Sheet xiii. Statement of Income xiv. Statement of Cash Flows V. References I. Introduction This analysis on Kraft (KRFT) and Kellogg (K) will include multiple facets.Kraft Foods Group, Inc. operates as a consumer packaged food and beverage company. It is also one of the largest company in the North America and the second largest in the world. It operates through six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts, and Canada. The company provides natura, cream, processed, grated and shredded, and cottage chesses, as well as sour creams; cold cuts, hot dogs, bacons, and protein packs; lunch combinations, pickles, and meat alternatives; coffees, hot beverage...
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...Career Comparison for Accountants and Financial Analysts Prepared for Sara Ray Prepared by Career Consultant June 16, 2013 LETTER OF TRANSMITTAL Sara Ray 123 Brookside Dr. Holbrook, NJ 75486-1256 June 21, 2013 Dear Sara, Here is the report you requested on June 1st for a comparison between of a career as an accountant and a financial analyst. Based off our conversation, we took your interests and previous work experience into consideration as we compared specific criteria between these two careers. While working for your previous employer as a junior accountant, you show your ability for detail and organization. An accountant must possess these skills as well as the ability to work independently. I also gathered from our conversation that you are not one to handle a tremendous amount of pressure well. As a financial analyst, this is a skill that is required. You could be faced with many deadlines that could be very stressful. Your education course of study was also included to compare to the education requirements of each career and even though there are many similarities between the two, there are many differences. For example, both careers require good written and oral comprehension but an accountant needs to have excellent mathematic skills and be able to choose the right formula to solve a problem. This skill is not as important as a financial analyst as is the ability to develop solutions to complex problems that need to be solved....
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...A Research Project On “Corporate Governance, Bank’s Transparency and Bank’s Performance – A Panel Analysis Public Study” Submitted To: MD. AL MAMUN Assistant Professor of Finance Department of Business Administration East West University Course Instructor: BUS 498 Submitted By: Monjur-E-Elahi ID: 2010-1-10-067 Date of Submission: 27th December, 2013 Letter of Transmittal: 27th December, 2013 Md. Al Mamun Assistant Professor of Finance Department of Business Administration East West University Submission of the research project on “Corporate Governance, Bank‟s Subject: Transparency and Bank‟s Performance – A Panel Analysis Public Study” Sir, Here is the research project on “Corporate Governance, Bank‟s Transparency and Bank‟s Performance – A Panel Analysis Public Study”, which you have assigned me to do, to get a clear understanding over corporate governance practice in different banks in Bangladesh. I have tried my best to gather all kinds of relevant data, which could give an overall idea on this topic. To do that, I‟ve conducted a study on 18 selected bank‟s corporate governance practice. In addition, I have also studies relevant rules, regulations and laws. I hope that this report will meet the expected standard. I have enjoyed doing the research work. Especially, your kind supervision has made the hard work easy. I am submitting this project for your kind consideration and thanking you for your constant assistance and guidance. Sincerely yours...
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...INTRODUCTION The Encoder Device division (EDD) at Digital Communications is a producer of communications devices for Government Agencies in the United States. The company works closely with Government Agencies and due to the nature of the devices they produce, and their application the Company works on a 'need to know' basis and as such production departments are compartmentalised. Production of Voice Ratio Encoding (VRE) devices is on going, however a new microprocessor has been developed, rendering the existing microprocessor obsolete. As a consequence the microprocessor needs be fitted to all existing devices in the 'field' and all new devices in production. EDD wish to win this 'replacement contract'. EDD have vast experience in 'ground up' bids for entire programmes but not on single sub-assemblies for resale. EDD are confident that they understand their business well, however they fear they lack the detailed information about the costs associated with sub assemblies. They wish to make an attractive but profitable bid for the contract. STRUCTURE OF EDD. EDD has four separate production departments: Data Encoding (DE), Video Encoding (VE), Voice Ratio Encoding (VRE) and Variable Wire Encoding. This specific contract is exclusive to VRE. EDD therefore need to ensure that they have the correct division of costs between each production department and that the cost for each department is then split correctly between the underlying manufacturing processes within...
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...A REPORT ON BALANCE SHEET ANALYSIS OF LANKA BANGLA FINANCE LIMITED AND INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED Date of submission: 8th November 2015 Submitted to Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Submitted by SL | Name | BBA ID | Remarks | 1 | Sifat sadia | 17-003 | | 2 | Barna Paul | 17-047 | | 3 | Maghla Hossain | 17-061 | | 4 | Saima Sultana | 17-069 | | 5 | Nawsina Arif | 17-085 | | Date of Submission: 8th November 2015 Department of Finance University of Dhaka Letter of Transmittal November 8, 2015 Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Subject: Submission of Report on “Balance Sheet Analysis of LankaBangla Finance Limited and International Finance Investment and Commerce Bank Limited”. Dear Madam, It gives us enormous pleasure to submit the report on Balance Sheet Analysis of Bank and NBFI as per the Advisor’s instruction. We expect this report to be informative as well as comprehensive as per requirement. Working with such a topic was an inspiring experience for us. We believe that the knowledge and the experience we gathered will facilitate us a lot in our future career life. With our limited knowledge, we have tried our level best to prepare the report worthwhile. Your acceptance and appreciation would surely inspire us. For any further explanations about the report, we will be gladly available to clarify the ins and outs. Sincerely, Sifat Sadia...
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...Applied Managerial Finance Financial Analysis: Financial Statement Ratios and Metrics November 30, 2013 Financial Analysis: Financial Statement Ratios and Metrics Mary has asked me to provide a list of financial ratios that she needs explained and a computation of each for Apex Printing. She would also like to see a comparison of these ratios to other firms in the printing sector. I am going to provide an indication of how each of these ratios differ from Apex’s and whether or not the ratio is indicative of better performance by Apex (Task List, 2013). Financial ratios are used to look at how an organization performs and what kind of financial situation they may be in. Information that is provided in the financial statement is used to calculate these ratios. Ratios show trends and as comparisons to other organizations. They also have the capability to predict bankruptcy. There are several different types of ratios used according to the particular type of information they want to provide. These are liquidity, asset turnover, financial leverage, profitability and dividend policy ratios (NetMBA, n.d.). Explain and compute Current ratio of Apex Short-term financial obligations can be seen in the liquidity ratio. Short-term creditors use this information to determine whether or not to extend credit to an organization. Current ratio and the quick ratio are the most frequently used ratios in this area (NetMBA, n.d.). As one of the most popular ratios used to compute a company’s...
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...[pic] Ford Motor Company By Mario Torres Dr. Lawrence Shao Finance 534 September 9, 2010 Table of Contents Executive Summary Company Overview A. Conduct research on the company’s operations and locations and summarize the company’s financial status for the past 3 years. 1. Operations, locations, markets, and lines of business. 1. Comparison of Ford’s financial statements for the past 3 years. Ratio Analysis A. Perform three year trend and ratio analysis for 2007, 2008, and 2009. Stock Price Analysis A. Research the company’s common stock price. 1. Research the S&P for the past five years. 2. Chart the price movement in the company’s common stock against the S&P movement. Conclusion Executive Summary Ford, General Motors, and Chrysler known as the “Big Three Automakers” faced some hard times and had to find a way to survive or possibly be forced into bankruptcy. General Motors and Chrysler accepted a loan package from the federal government while the Ford Motor Company decided to try and make it on its own. The loan package given to GM and Chrysler came with strict conditions that it cut its labor costs and reorganize its debt obligations. Skip to next paragraphFord, however, decided to try and improve its competitive position without the assistance that federal loans provided GM and Chrysler. In order to accomplish this, Ford had to reduce its own costs to stay on a level playing...
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...Financial Terminology Financial management is such a fascinating subject. A lot of people would ask, “Why?” Financial management can be easily explained as the management of money. Financial management is crucial for both individuals and organizations because it deals with managing funds. It guides a company and individual in making optimum use of money to achieve maximum returns. While working on this specific assignment I decided to concentrate on financial ratio analysis, since I am the business owner, and most of the financial terms like balance sheet, shareholder’s equity, EBITDA, EBITDAM, financial ethics, financial benchmarking I am very familiar with. I must admit that understanding financial ratio analysis I found somehow difficult, this is why I decided to concentrate on this topic. Summary of Articles The first article that I read is called “Financial Ratios, Discriminant Analysis and the Predictions of Corporate Bankruptcy” by Edward I. Altman, published 1968 in the Journal of Finance. The article says that academicians are seeking to eliminate ratio analysis as an analytical technique in assessing the performance of a business. According to the article theorists are attacking the relevance of ratio analysis. The article explores the possibility of whether the gap between traditional ratio analysis and more rigorous statistical techniques can be bridged. According to the article the traditional ratio analysis is no longer an important analytical...
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...that accounting concepts have on financial statements. Four important accounting concepts that underpin the preparation of any sets of accounts one of which is going concern that helps an account to assume for any future problems that occur in a business. This helps companies to make future plans and gives them time to gather money to sort out any financial problems. Consistency also has an advantage in helping in accounting by users of accounts can make more meaningful comparisons of financial performance. Prudence helps investors sort out financial performance such as future problems and cost of the business before recognising any signs of profits. Accruals also help financial data to be useful for users by all business revenues and cost are recorded in the appropriate statements and at the appropriate time. Conventions also have many advantages in influences financial statements to be useful for investors. Separate entity is one example this convention seeks to ensure that all private transactions and matters relating to the owners are segregated from transactions that relate to the business. This is an advantage because owner’s transactions are kept private. Also they are not mixed with the business finance so that users can clearly see the business financial state. Also materiality is also an important convention in a business financial statement use for users. The preparation of accounts involves a high degree of judgment where decisions are made about the appropriateness...
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