...Annual Report Analysis SK Md Saif Ali (Neil) 500335019 CMN 413 Analysis of Annual Report: McDonalds Here is an annual report analysis of McDonalds based on recurring themes, corporate image, Branding, Readability, design, interest, factual comprehensiveness, consistency and transparency. Recurring Themes: Health concern is the biggest issue to general people when it comes down to fast food. Despite of their great they are incapable to promote good health. In 2012 Annual report, McDonalds claimed to overcome these issues by providing food with quality and taste. By adding real fruits, vegetables, salad to its menu, it has taken the food quality to a new level. Moreover, McDonalds has also become more eco-friendly. By successfully diminishing the usage of carbon footprint and energy, McDonalds proved that point to some extent. This organization has a family crisis fund to help families during depraved times. Corporate Image: approximately 69 million people around the world is served food by McDonalds. McDonalds has differed itself from other companies by seeking competitive advantage. They try to gain that by adding healthy food to their menu and by renovating the business. On page 5 of annual report, It is stated that how standing out for employees and looking out for its own people have earned McDonald’s a competitive advantage on others. The reason behind using such statement served multiple purposes. First of all its shows why one should work in McDonalds and...
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...PROJECT MANAGEMENT [BBA 615] PORTER’S FIVE FORCES MODEL ON SONY CORPORATION PORTER’S FIVE FORCE ANALYSIS CONSUMER ELECTRONICS INDUSTRY [pic] 1. THREAT OF NEW ENTRANTS - LOW ➢ Economies of Scale ➢ Product Differentiation ➢ Capital Requirements ➢ Switching Costs ➢ Technology, Know-how and Innovation ➢ Government Policy 2. BARGAINING POWER OF BUYERS -HIGH • Products are fairly undifferentiated • Buyers face few switching costs • Online shopping has increased the bargaining power of buyers • Buyers are price sensitive and demand high quality 3. BARGAINING POWER OF SUPPLIERS - LOW • Big global supply chain management (Suppliers are not concentrated) • Suppliers are forced to cut their prices or go out of business • Direct negotiation with suppliers in order to encourage: • Reliable supply • Faster delivery • Lower prices • Many OEMs start to produce their own components in-house 4. RIVALRY AMONG EXISTING COMETITORS - HIGH ➢ Numerous and rather equally balanced competitors. ➢ Short product life-cycle ➢ High R & D costs ➢ Lack of differentiation or switching costs ...
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...Business Analysis and Valuation Report Prepared By: Version # Updated on ------------------------------------------------- Acknowledgments ------------------------------------------------- If applicable, include acknowledgement to contributing individuals: ------------------------------------------------- ------------------------------------------------- Analyst’s Name | Number | E-Mail Address | | | | Document Name | | Date Created | | Milestone 1 date submitted | | Milestone 2 date submitted | | Milestone 3 date submitted | | Finalization date | | | | | | | | REPORT VERSION RECORD The Business Analysis and Valuation Report is a managed document with tracking of versions, changes, and release dates for each of the three milestones. Version Name | Version Number | Date | Author(s) Name(s) | Change Description | | | | | Document created | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Milestone versions of the report are issued including the complete document with the sections completed to date to reflect the work to date by the analyst team. The milestone versions of the document are authorized for release only after the analyst’s signature has been obtained. Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 2 PREPARED: DATE:___/___/___ ...
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...Financial Statement Analysis Financial Statement Analysis 39 Common‐Size Financial Statements • Balance sheet items as a percentage of ______________________. Income statement items as a percentage of ______________________. • 40 Suzie Q Corporation Balance Sheet December 31, 2011 Assets: Current Assets: Cash Accounts Rec. Inventory Total CA Fixed Assets: Net Fixed Assets Total Assets Liabilities & Equity: Current Liabilities: 12.5% Accts. Payable 21.9% Notes Payable Total CL 24.2% 58.6% Long‐term Debt: Common Stock 41.4% Retained Earnings 100.0% Total Liab. & S.E. $ 80 140 155 $375 265 $640 $ 95 110 $205 120 40 275 $640 14.8% 17.2% 32.0% 18.8% 6.2% 43.0% 100.0% 41 FINC 3610 ‐ Yost Financial Statement Analysis Suzie Q Corporation Income Statement For Year Ended December 31, 2011 Sales Cost of Goods Sold SG&A Expenses Depreciation EBIT Interest Expense EBT Taxes Net Income $910 470 210 60 $170 40 $130 52 $78 100.0% 51.6% 23.1% 6.6% 18.7% 4.4% 14.3% 5.7% 8.6% 42 Classification of Financial Ratios • • Short‐term Solvency or Liquidity Ratios Long‐term Solvency or Financial Leverage Ratios Asset Management or Turnover Ratios Profitability Ratios Market Value Ratios 43 • • • Short‐term Solvency (Liquidity) Ratios • Current Ratio • Quick (Acid‐Test) Ratio • Cash Ratio • Net Working Capital to Total Assets • Interval Measure 44 FINC 3610 ‐ Yost Financial Statement Analysis Long‐term Solvency (Financial Leverage) Ratios ...
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...Q: 3: I have argued that investors take on greater risks because they have more money to invest and they already have low risk investments like government bonds, prime commercial property and blue chip shares. Does the FCIC report provide any evidence that this view is correct? History emerged with continuous record breaking issues. In the arena of finance and economics, this turns into a collapsing shape. Shaky sentiment though was felt when this kind of financial turbulence starts. But, it becomes too late which can be called as “little time to control it”. Arguments behind this kind of financial melting create lots of debate amid analysts, regulators, business personnel and so as general people. But, almost all the time, after effect left a digester for the future. This disaster begins with ‘Fear’ and turns into ‘Panic’. Then dilemma prevailed alongside the indecisions especially, to them who fall in trap. Massive losses incur always. Most of the time, it takes lots of interval to recover. Financial Crisis 2008 was a remarkable history that would shake all the people mostly in USA and Europe. Besides, nearly all the countries felt its bad paws that drastically affected the economy of respective countries. Beginning in 1990, getting incremental shape in 2000 and turning into a robust figure with the participation of general people, housing bubble left an antiquity of learning for all the citizens. Excess liquidity of one country that remained unused passes to another country...
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...|Topic in Mastery of the |Chapter 3 - Building Your |Chapter 4 – Brain Teasers: Using|Chapter 5 – Cases to Accompany | |Financial Accounting Research |Business Vocabulary: Defining |FARS to Untangle the Mystery |FARS [Related Assignments at End| |System (FARS) Through Cases 2nd |Terms and Solving Problems |[See Introduction and Example |of Cases] | |Edition by Wallace [Chapter 1 |Through FARS [See Introduction |pp. 4-1 to 4-7] | | |and 2 where noted] |and Example pp. 3-1 to 3-7] | | | |FASB, Standard Setting; GAAP; |Table 3.1 Accounting Standards; |1: How Many Standards Have Been |Case 12: Emerging Issues: The | |Governance; FARS [Chapter 1 – |Table 3.39 Regulated Industry; |Issued by FASB?; 2: Dissents |Agenda of FASB; [Case 8 Related:| |The Financial Accounting |Table 3.40 Specialized Industry |Portending Future?; 32: What |Does It Matter Where Guidance Is| |Research System (FARS) Primer.] |Considerations |Makes One GAAP Preferable to |Located?]; [Case 12 Related: Are| | | |Another?; 30: When Can Analogies|Accounting Rules to Blame?] | | | |Be Used?; 31: What Are the 10 | | | ...
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...differences, profit expectations play a crucial role. WIL-MOR JV was formed in the year 1992 by a 50/50 partnership between Detroit base Wilson industries and Japan based Morota Manufacturing company to cater the transformations happening in North American automobile manufacturing segment. Four years after the inception of the JV, company is not performing financially well as expected and this creates tension between both the partners and they plan to re evaluate the strategy. In depth-Problem Analysis. The major issues that lead to the re-evaluation of the relationship between the two companies can be summarized as * Failure to achieve forecasted returns When the JV was signed both companies aimed to leverage the maximum efficiency and gain a market leader position. They expected the company to break even within three years of operation. But even in the fifth year company is losing about $100,000 a month. With company running at close to full capacity, having client mix of transplants and Big 3 and still not able to make money made Wilson managers sceptical about the capability of JV. * Different Perspective about profit. Wilson focussed on making quick money out of the deal and they are profit centric, whereas Morota had a quality centric long term vision emphasizing on strong customer relationships. They articulated the philosophy of reducing cost and increasing quality to match with the Japanese standard. And once they establish that reputation, the reputation will bring...
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...Option Pricing, Interest Rate Risk in U.S Diana PĂUN & Ramona GOGONCEA (2013). Interest Rate Risk Management and the Use of Derivative Securities. Economia Seria Management. Retrieved from: <http://www.management.ase.ro/reveconomia/2013-2/4.pdf> The study by these two authors aims at demonstrating how derivative financial instruments can be utilized to prudently manage interest rate risk majorly faced by numerous banks and financial institutions as well as enable the efficient application of monitoring and control tools. There are a couple of risk management methods at the disposal of banks including both balance sheet and off the balance sheet such as the gap method of managing interest rate risk for purposes of controlling short-term rates exposure, combined with derivatives such as options to manage the residual interest rate exposures. Interest rate risks emanate from interest rates sensitivity differentials of capital outflows and inflows. Due to the common view or misconception that high interest rates are the best way of fighting inflation, banks’’ engaging in monetary policy. Financial institutions play a major role in influencing interest rates since they engage in releasing capita to the public by buying assets in the primary markets and selling securities in the secondary market so as to fund purchase of assets. Furthermore, any interest-bearing asset for instance a loan or bond may face interest rate risk caused by changes in the value of assets resulting...
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...Financial Statements Papers Part I Sherrie Christian ACC/497 April 8, 2013 Rick Kwan, MBA Financial Statements Papers Part I The financial statements are important as they inform the users of the economic health and stability of the entity. Each financial statement provides information to determine economic health, such as financial position, performance, and changes. Assets, liabilities, and equity provide a measurement of financial position. Income and expenses provide a measurement of performance. The income statement is a vital section of the financial statements, also known as the profit and loss statement. The income statement presents revenue balances, and profits for a specific period of reporting. The income statement presents sales, cost of sales, operating and non-operating expenses, and the income for the prior three reporting periods. The income statement presents awareness of changes or the lack of changes in the sales balances, cost of sales, and operating and non-operating expenses. The income statement provides comparisons of prior reporting periods to current reporting periods. The income statement measures the business performance in terms of revenue, and net income. Managers practice income statement analysis to work out inefficiencies, and processes that are ineffective. Revenue, expenses, and net income are the major parts of the income statement. A financial statement user can view the Home Depot Statement of Earnings for the fiscal year ending...
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...progress on the career ladder, I want to develop a more holistic view of the business place. I know the Kelly program can develop the view for me. I want to advance my strategic skills, marketing skills, negotiating skills, and especially forecasting skills. I have realized I have difficulty seeing the big picture and that is necessary in management. My realizations were solidified when I took part in the Granola Project. During the project, I was very comfortable with taking on the financial analysis portion of our report/presentation. However I found that I was resistant to taking on a leading role, besides support research, in the other aspects. Since my overall goals are harder to measure, the gaps that I discovered while being involved in the Granola Project can be converted into more measurable and specific goals. One such goal is to be promoted to manager around this time next year. Currently I have the technical skills, but I would like to enhance my managerial capabilities. I find myself resistant to want to embrace the soft skills side of business. I am hoping the Kelly program will broaden my horizons and give me the tools I need to be able to see the big picture. I know...
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...more theatrical practices are being used by corporate leaders for creating strong and effective performances. The article explains that ‘stage-managed’ and real-life management presentations are treated as important devices for representing the organization and for managing the impressions of targeted audiences The publicity of such events: * Increases participants’ efforts to engage in theatrical behavior * Increases participants’ attention in big corporate events such as annual general meetings (AGMs) * Increases the effectiveness of the messages delivered in these events in a theatrical manner * Importance of theatrical-style presentations These presentations target important people for the organization: shareholders and public stakeholders, at employees, and at financial journalists and analysts; All these are important audiences in annual press conferences and analyst meetings. Many companies spend big amounts of money on such events. Importance of theatrical-style presentations: Leading financial analysts use such meetings as a source of important qualitative information this kind of info cannot be obtained via other channels of communication Influential journalists and thousands of private investors also attend to...
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...I am a number and big picture junkie who enjoyed the period spent at the Better Business Bureau of New York and later with the City government performing financial analysis, budgeting, and analyzing public policies from the financial lens. As evident from my experience, I have not held a day-to-day position of this nature in my entire career. However, don’t let that fool you. I am familiar with the demands of this position having advised several professionals in these roles. I just happen to take a different approach to my career and decided to live, travel, learn, and expand my experience into many facets of business environment including contracting, finance, budgeting, auditing, and legal analysis. Now, I am back in New York City looking...
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...September 24, 2012 Esther Lopez Instructor: Paul Verlasky (Name of University or School) Application in Managerial Accounting Looking back to the beginning of this course, these few weeks have been a great challenge, confusion, and knowledge. Before starting the Accounting course, seeing it as a world of numbers, solving mathematic problems, spreadsheets, and journals. I found myself learning a new world of knowledge of financial reports, assessing tools of management in understanding financial concepts which will allow to be organized, efficient, and productive. In the First week, we learn the differences between Managerial and Financial Accounting. Financial accounting is design as an informational tool for business managers and limited to the needs of external users for investors and creditors. Managerial accounting focuses on information used by executives, managers, and employees who within the business it allows them to plan, direct, and control business operations. Also, reviewing the cost behavior, operating leverage, and profitability analysis. “To plan and control business operations effectively, managers need to understand how different costs behave in relation to changes in the volume of activity.” (Edmonds, Olds, Nair, & Tsay, 2010;pg 411) This week I can relate and understand the concepts, as a manager for a dental office how to utilize these factors and place them in good use to be capable to be more efficient in my performance. Having a great responsibility...
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...DM Consulting 123 Main St. Millburn, NJ 07041 Mr. Soandso, President Boston Financial Conglomerate., Inc. 123 Main St. Boston, MA 12345 Dear Mr. Soandso: Enclosed is the report you requested, giving our opinion regarding future acquisitions and the analysis involved in the process. Please let me know if you have questions or need further information. Yours truly, Brian Smith Enclosure Future analytical approach It is my opinion, that when dealing with future acquisitions, financial and accounting analysis is simply not enough. Therefore, it is my recommendation that an aggregate analytical approach include not just fundamental analysis, but also; corporate culture, synergy and customer analysis. Corporate Culture Analysis Future acquisitions need to carefully examine the morale and culture of the company being sought after. An overly dependent employee base that clings to its President and CEO presents a certain risk in production loss should the CEO exit the firm. As with the acquisition of Bainbridge House, morale dropped and attrition skyrocketed after Mr. Bainbridge’s passing. A high attrition rate and low morale has been shown to negatively affect production and overall efficiency. Therefore, a careful analysis needs to identify the independence and competitiveness of company employees. Synergy Analysis It is not enough to purchase a company based on fundamentals alone. If the company cultures of your firm and the firm being acquired...
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...years after obtaining my MBA. The Top School academic experience can build on my public accounting training and my multi-cultural and multi-lingual background to prepare me for work first as an equity analyst in the mutual fund industry and ultimately as a portfolio manager specializing in Asian Pacific equities. As a CPA and staff accountant with Big 6 for the past two and a half years, I have developed a solid foundation in teamwork, analytical, and problem-solving skills. As a bilingual associate of the Asia-Pacific Business Group, I specialize in auditing the financial statements of in-bound Asian businesses. However, while Big 6 provides expansive career opportunities in public accounting, I have reached a plateau in developing the analytical and management skills necessary to achieve my ultimate career goal of money management. In public accounting, we measure and examine financial transactions of the past. In contrast, money managers examine the current attributes of securities and attempt to predict their future performance; unfortunately, this forward-looking focus is absent in public accounting. Unable to delve into financial areas beyond accounting and limited in obtaining more challenging analytical experiences, I am also constrained by the...
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