...FIN 6406 A Financial Ratio Quarterly Trend Analysis of: Kellogg Co. Stock Symbol: K Listed on NYSE Exchange Prepared for: Dr. Edward Lawrence Department of Finance Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Ana Carolina De Obaldía Rogemif Fuentes Cesar Giovanni Santos Fábrega Introduction For this project we decided to choose Kellogg’s Company (NYSE: K) to elaborate a financial quarterly trend analysis because it is a big, stable company with 108 years in the market and its products are sold in more than 180 countries worldwide. The ready to eat cereals first appeared in the late 1800’s when a group of vegetarians wanted to expand their food options and decided to create the wheat and corn flakes. It wasn´t until 1906 that Kellogg’s Co. entered the market and has stayed latent through many generations until these days. It is interesting that it survived two world wars and the depression of the United States in the 1930’s. Being this long in the market also means that they have known how to evolve in this world with constant changes, adapting to the behavioral changes in people and their likes remaining competitive and appealing. It is more of a mature company rather than growing company and has many brand-loyal customers. Regarding the sources of information consulted for this report, we used some financial websites to get the financial statements of Kellogg’s and its main competitor General Mills, which we will...
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...Financial Trend Comparison For each of the five ratio categories: Liquidity, Asset Utilization, Profitability, Debt Utilization, and Market Values, write a paragraph regarding the trend and implications about the future financial health of the company. Liquidity: The company has very strong ratios helping the company to do well. Dell’s current ratio and quick ratio are at 1.47 and 1.40 respectably, this similarity between one and the other is a reflection of their very low inventory compared to the amount of sales that the company has, also influencing the net working capital ratio of only 0.23. At first sight the current liabilities to inventory ratio of 15 might seem a bit high, although the denominator of the current liability to inventory ratio is inventory and it is really low. It’s really hard to compare the company to the industry average because there is no other company that handles its inventory like Dell does. The company’s operation ratio expense is 12.64, way below compare to their industry do to their very low inventory. Assets Utilization: Asset utilization is vital to the success of an organization, the way assets are used within the organization is their biggest and strongest strategy making Dell a leader in its industry. A reflection of this strategy is their impressive inventory turnover ratio of 45.45. Unlike the industry average low numbers on the rest of the asset utilization ratios such as fixed assets turnover, total assets ratio and...
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...while also maintaining a strong balance sheet. They execute their strategy by investing available capital in their existing homebuilding markets and opportunistically entering new markets. They have been actively been involved in evaluating homebuilding acquisition opportunities as they arose, some of which resulted in acquisitions and contributed to growth in their business. They have enhanced their leverage on general and administrative activities, and this has allowed greater flexibility to compete for greater market share in the markets. Liquidity Analysis A company's liquidity is its ability to meet its near-term obligations, and it is a major measure of financial health. In my analysis, I have provided Current ratio, Quick ration and cash. The current ratio is the most basic liquidity test. It signifies a company's ability to meet its short-term liabilities with its short-term...
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...A Financial Ratio Quarterly Trend Analysis of Marriott International, Inc. Stock symbol: MAR Listed on the New York Stock Exchange By: 1.0 Introduction This report provides a financial quarterly trend analysis for Marriott International, Inc. The U.S.-based company has been in the lodging business since 1957 1 and currently operates in more than 70 countries worldwide 2, making it one of the oldest and largest hotel corporations in the world 3. Marriott International’s stock is publicly traded on the New York Stock Exchange (NYSE) under the symbol “MAR”, which we will use to reference the company throughout this report. Our team chose to analyze MAR for the following reasons: • In our Organizational Behavior class, we completed the “Work Preferences Indicator” and discovered that the field of hospitality management was recommended for everyone on our team. • The hotel industry is booming in Panama (with over 12,000 new rooms currently under construction for delivery by 2013). 4 Marriott has had a strong market presence over the last decade and currently commands one of the highest room rates in Panama City.5 It is also undergoing an aggressive expansion and remodeling of its two properties at this time. 6 • Most of us are frequent business travelers and often stay in Marriott-flagged properties. • One of our team members was a former sales and marketing director for a luxury resort anchored by a Marriott hotel, Los Sueños Resort & Marina in Costa...
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...is a discussion focused on the differences and usages for comparative and ratio analysis. The use of multiple sets of data for comparison to detect trends is comparative analysis. Comparative analysis demonstrates trends within an organization. With continued use, Comparative analysis can identify diminishing trends through the use of quarterly data analysis. Ratio analysis also helps to establish trends, and make financial comparisons that assist management in making healthy financial decisions. Also, ratio analysis identifies strengths and weaknesses within an organization that allows management to make strategic decisions that benefit the success of the operation. According to Wiley (2013), “Information from financial statements can be gathered by examining relationships between items on the statements and identifying trends in these relationships” (Chapter 13). The relationships are numerically expressed in percentages or ratios, then trends can be recognized with a comparative analysis. With comparative analysis, the exact same data is provided for two or more different periods so similar data can be compared. Ratio analysis only provides a glimpse, due to the analysis being for a single given period. With comparative analysis a company can determine whether a trend is diminishing or growing from year to year and by what proportion. According to Lohrey (2015), “Comparative analysis is the item by item comparison of two or more comparable products, processes...
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...Lewis Hodge Corporate Finance Company analysis May 8, 2015 3M Company (MMM) analysis Financial Statements The motive of this paper is to carry out a precise financial analysis on3M Company. Firstly, three important financial statements for this company will be highlighted. These statements are the income statement, balance sheet, and the statement of cash flow. These statements are attached in Microsoft excel. Ratio Analysis Following this, a number of ratios were computed in order to show specific trends in 3M Company. This included ratios that measured short term solvency or liquidity, long-term solvency, asset management or turnover ratios, and profitability. Along with the attached ratios, a table below will illustrate the market value ratios. Sony Market Value Ratios | 2012 | 2013 | 2014 | Price to Earnings | 14.71 | 20.87 | 21.93 | Peg ratio | 2.47 | 3.24 | 1.91 | Price/Sales | 3.29 | 2.53 | 3.16 | Market/book | 7.20 | 4.12 | 5.27 | Tobin's Q | 1.81 | 2.75 | 3.37 | Enterprise Value - EBTDA | 12.13 | 9.74 | 11.79 | General Electric Market Value Ratios | 2012 | 2013 | 2014 | Price to Earnings | 15.96 | 16.82 | 21.38 | Peg ratio | 7.63 | 1.56 | 3.74 | Price/Sales | 1.46 | 1.62 | 1.85 | Market/book | 1.71 | 1.89 | 1.99 | Tobin's Q | .34 | .41 | .35 | Enterprise Value - EBTDA | 11.94 | 11.64 | 13.34 | According to this evaluation of these ratios it can be stated that 3M Company is fairly valued. When compared to General...
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...A Financial Ratio Quarterly Trend Analysis of AMAZON, Inc. Stock symbol: AMZN Listed on the New York Stock Exchange 1.0 Introduction 2.0 Financial Ratio Calculation and Analysis 2.1 Methodology Our team obtained income statements, balance sheets, cash flow statements and trading information for AMZN for the four most recent quarters (XXX>>>>>) 2.2 Ratio Computations The following table summarizes the results of the ratio computations for AMZ: KEY FINANCIAL RATIOS Amazon Liquidity Ratios | Q1 | Q2 | Q3 | Q4 | ANNUAL | Current Ratio | 1.32 | 1.40 | 1.46 | 1.32 | 1.32 | Quick Ratio | 1.02 | 1.09 | 1.00 | 0.91 | 0.64 | Net Working Capital Ratio | 2.56 | 1.76 | 1.49 | 1.52 | 1.52 | Current Liabilities to Inventory Ratio | 3.24 | 2.68 | 2.49 | 2.38 | 2.38 | Cash Ratio | 0.36 | 0.34 | 0.25 | 0.31 | 0.31 | Asset Ratios | Q1 | Q2 | Q3 | Q4 | ANNUAL | Inventory Turnover Ratio | 3.17 | 2.56 | 2.25 | 2.13 | 2.13 | Fixed Assets Turnover Ratio | 3.98 | 3.40 | 2.86 | 2.72 | 2.72 | Total Assets Ratio | 0.69 | 0.58 | 0.55 | 0.57 | 0.57 | Asset to Equity Ratio | 2.00 | 1.54 | 1.45 | 1.53 | 1.53 | Profitability Ratios | Q1 | Q2 | Q3 | Q4 | ANNUAL | Return on Assets Ratio | 22.13 | 11.91 | 10.65 | 3.31 | 6.12 | Return on Equity Ratio | 60.64 | 27.35 | 24.6 | 8.11 | 16.76 | Profit Margin Ratio | 3.21 | 2.04 | 1.9 | 5.7 | 3.36 | Basic Earnings Power Ratio | 2.72 | 1.79 | 1.42 | 0.77...
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...Caterpillar Inc. Analysis FIN400 – Analyzing Financial Statements June 23, 2013 Caterpillar Inc. Analysis Caterpillar Inc. is a global company headquartered Peoria, Illinois. They specialize in the manufacturing and selling of construction, mining, and farm equipment. Caterpillar Financial Services is a subsidiary company that offers financing options to their customers. I currently work of a construction company and I specialize in the accounting management of the company’s assets. Approximately 80% of the company assets are from Caterpillar and 70% of the assets that are financed are through Caterpillar Financial Services. The stability of Caterpillar Inc. is important to the company I work for. Financial Statement Analysis “Financial statement analysis is a judgmental process.” (Gibson, 2012, pg. 199) We have learned several ratios to evaluate a company’s liquidity, long-term debt-paying ability, profitability, cash flow analysis, creditworthiness, and going concerns. Along with the ratios, common-size analysis techniques or vertical and horizontal analysis can be used to evaluate trends in accounts from the financial statements. Common-size analysis can also help give a true comparison when evaluating companies of different sizes. (Gibson, 2012) Comparing calculated ratios to competitors or industry standards can be used as benchmarks and can add meaning to the analysis. Financial statements are analyzed by banks, managers/owners, controllers...
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...A Financial Ratio Quarterly Trend Analysis of Nike, Inc. Stock symbol: NKE Listed on the New York Stock Exchange Prepared for: Dr. Edward Lawrence Department of Finance Florida International University In partial fulfillment of the requirements of the course: FIN 6406 By: Introduction This financial ratio quarterly trend analysis was composed for Nike International. The U.S –based company was started in 1964 with $500, with its main office being the trunk of a green Plymouth Valiant1. Originally started by Bill Bowerman, a nationally respected track and field coach at the University of Oregon, and Phil Knight, an accountant, who also happened to be a talented middle-distance runner from Portland2. Knight enrolled at Oregon in the fall of 1955 and competed for Bowerman’s track program thus creating the platform for Blue Ribbon Sports3, which is now known worldwide as Nike. Nike currently operates its three main product lines - footwear, apparel and equipment – in 46 countries by approximately 600 contract factories that employ more than 800,000 workers around the world4. Nike International’s stock is publicly traded on the New York Stock Exchange (NYSE) under the symbol “NKE”, which we will use to reference the company throughout this report. Our team chose to analyze NKE for the following reasons: • Knowing that the company started very small and grew to what seems a limitless boundary seemed intriguing to us and promoted a desire to understand...
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...ensure the lightest most custom bike is offered to its customers. The company also invented the CarbonLite which was the first designed bike to offer drive shaft technology. Although Competition Bikes, Inc. has experienced tremendous success over the past eight years in business, they have also experience a 15% sales decline over the most recent years. It is imperative that a financial analysis take place in efforts to trend where the financial issues are arising from allowing Competition Bikes, Inc. to explore other means of increasing profit margins. In completing a financial analysis for Competition Bikes, Inc. one must analyze financial data to include performing a horizontal analysis. This type of analysis is designed to show trends or changes between years in both dollar and percentage form. Showing changes in percentage form allows for better perspective in regards to the significance of financial change between years. In performing a horizontal analysis (current year minus base year divided by base year), the balance sheet as well as the income statements must be assessed. There are several trends noted when analyzing the income statement....
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...APPLE APPLE [Company name] | [Company address] [Company name] | [Company address] Financial Analysis writer Financial Analysis writer 2015 2015 ELECTRONIC INDUSTRY OUTLOOK The electronic industry was developed in the twentieth century and now they become a worldwide industry who earns billions of dollars for every year. Electronic devices are used by modern people in every field of life like use mobile phones and computers for their household and commercial needs. These devices are assembled in semi-automated and automated factories. Electronic industry products were assembled from the integrated circuits. With the passing of days the size of the electronics industry will enhance and they used Toxic material which were not easily recycled. So International courts develop rules and guidelines to address the problems of recycling of toxic material. The Electronic industry will usually be known as consumer's electronics. Different types of products are used by everyone in consumer electronics. For example consumer electronics used in office productivity, communication, and entertainment. Radio broadcasting was the first key consumer product introduced in the twentieth century. Afterwards Calculators, recorders, digital cameras, telephones, Mobiles, personal computers, DVDs, Camcorders and GPS automotive electronics were developed and included in consumer electronics. Now in 2015 these products are made based on latest technologies and everyone used latest mobiles and...
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...Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Description: Hup Seng Industries Bhd Fundamental Company Report provides a complete overview of the company’s affairs. The report includes financial and SWOT information, industry analysis, opinions, estimates, Hup Seng Industries Bhd annual and quarterly forecasts made by stock market experts. The report also enables direct comparison to be made between Hup Seng Industries Bhd and its competitors. This provides our Clients with a clear understanding of Hup Seng Industries Bhd position in the Food and Beverages Industry. Scope The report contains company’s profile and data about owners, senior executives, locations, subsidiaries, markets, products, and company history. The SWOT-analysis provides information about company’s strengths, weaknesses, opportunities, and possible threats against it. The report outlines the main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios, and company’s long-term solvency. It also shows company’s income statement and ratio trend-charts, with balance sheets and cash flows presented on an annual and quarterly basis. Company’s financial ratios are directly compared with those of its competitors through industry averages. The report provides relevant news, an analysis of PR-activity, and stock price movements. The latter are correlated with pertinent news and press releases, and annual and quarterly forecasts are given by a variety...
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...Following is a comprehensive analysis of the financials of the profitability, competitiveness and overall stability of the Competition Bikes, Inc. based on their finance statements. This analysis provides information based on working capital, horizontal analysis, vertical analysis, ratio analysis and trend analysis. This analysis provides essential information on forecasting budget limits and overhead expenses based on overall sales potential. The analysis is based on the last three fiscal years of data provided by Competition Bicycles, Inc. A.1.A. : Horizontal Analysis A horizontal analysis is used to see variations in account line items from year to year. Strictly speaking, according to Accounting for Management (2014), a horizontal analysis “shows changes in the amounts of corresponding financial statement items over a period of time.” The formula utilized to calculate this change is Dollar change = Comparison Year Balance – Base Year’s Balance. The percent change is, therefore, calculated as the dollar change / Base Year’s Balance and multiplied by 100 for a strict percentage. At Competition Bikes, the numbers tell an interesting story. Sales dramatically increased 33.3% between years 6 and 7 before taking a loss of 15% in years 7 to 8. This still puts Competition Bikes at a solid increase of 13.3% in sales from years 6 to 8. Gross profits show a similar trend, increasing by 37.5% between years 6 and 7, while dropping by 16.3% between years 7 and 8 – the net profit increase...
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...A Financial Ratio Quarterly Trend Analysis of: Exxon Mobil Corporation Stock Symbol: XOM Listed on New York Stock Exchange Prepared for: Dr. Edward Lawrence Department of Finance and Real Estate Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Nicole Suarez Panther ID # 1101809 1.0 Introduction ExxonMobil Corporation and its affiliated companies operate in the United States and most other countries. Headquartered in Irvine, TX, ExxonMobil was formed following the merger of Mobil and Exxon. It is the world’s largest publicly traded international Oil and Gas Company. They hold an industry-leading inventory of global oil and gas resources. They are the world’s largest refiner and marketer of petroleum products, and their chemical company ranks among the world’s largest. They are also a technology company, applying science and innovation to find better, safer and cleaner ways to deliver the energy the world needs. The company has more than 82,000 employees across the world. ExxonMobil’s stock is publicly traded on the New York Stock Exchange (NYSE) under the symbol “XOM.” This report provides a quarterly trend analysis for ExxonMobil for fiscal year 2011. Financial information was obtained from the company’s website by examining the 10-Q SEC filings for Quarters 1 through 3 and the 10-K SEC filing for Quarter 4. Additional financial information was also found on Yahoo! Finance, MSN...
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...Assessment Activity 1 1. Why is it necessary for business organisations to collect, file and maintain financial records? * Financial and other records are legally required to be kept for up to 7 years or more as a legal requirement * Collection, filing and maintaining of relevant financial information is pertinent to running a successful business * Records can help make financial decisions * Financial records can also show where there are gaps in budgets and financial plans * Can help in putting together contingency plans 2. What external information might be required in order to construct useful and useable plans for a team? How would you access this data and what reporting processes might external data be required for? Data / information required | Methods of accessing it | Competitors | Research, internet, public feedback | Demographic | ABS | Socio-economic demographic | ABS | Markets / trends | Research | Political / social data | Research | 3. Explain the procedures you might need to follow to access the financial data and plans necessary for efficient operation of a team/section/division. * Have a system of collation, filing and disseminating of financial information in place that is suitable for the organisational requirements * Access system weekly, monthly, quarterly, yearly dependant on the financial information 4. How do you determine whether the outcomes are reasonable, achievable, comprehensive and...
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