...Energizer Holdings Inc (NYSE:ENR) Price: $40.25 +0.17(+0.42%) Financial Strength : 6/10 vs industry Cash to Debt Equity to Asset Interest Coverage vs history WACC vs ROIC 5.30 ROA (%) 2.21% 12.59% WACC ROIC 1.13 ROE (%) Z-Score: 3.32 5.97 Net-margin (%) 5.10 2.13 Revenue Growth (3Y)(%) Forward P/E Good Signs 2011 2012 Per Share Revenue: 2013 Consistent growth 2014 P/S Ratio: Close to 1-year low 2015 Apr 0 0 373 357 569 412 374 29.70 1.92 Quick Ratio Days Inventory 1.12 88.42 Days Sales Outstanding 37.24 15.20 Quarterly Revenues Jan N/A Current Ratio 5.10 vs history 1.44 EV-to-EBIT 2.40 EBITDA Growth (3Y)(%) Valuation Box vs industry P/S ROC (Joel Greenblatt) (%) 30.59 EPS Growth (3Y)(%) Warning Signs Valuation Ratios vs vs industry history Operating margin (%) -0.27 Stock PDF Enterprise Value: $3.42 B Profitability & Growth : 5/10 0.08 GuruFocus 09/25/2015 8:09PM EST Market Cap: $2.5 B Company Description Jul Oct Full Year ... (Read More) Competitors: Guru Trades 487 501 1,773 Quarterly Earnings per Share DCF Jan Earnings per share: $-0.32 Growth Rate in the next 10 years: 5.20% Terminal Growth Rate for 10 years: 4% Fair Value: $-3.47 2011 2012 2013 2014 2015 Reverse DCF 2011 2012 2013 2014 2015 Expected eps Growth Rate: inf% Apr ...
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...Fatima Naqvi FIN403 FSAP Company description: In 1963, Stanley brothers, Sidney Goldstein and partner Ralph Hoagland started a store selling health and beauty products. The store was located in Massachusetts, and was called CVS for Consumer value stores. Since then it has become the second largest pharmacy chain with more than 7,600 stores all over United States. CVS is known for selling prescription drugs, general merchandise, seasonal merchandise, and convenience food all over the stores and online via CVS.com. The company also provides healthcare services located within CVS stores. CVS is known for having a broad variety of products and one of the leading drugstore chains. It is also known to be the largest employer of pharmacists and nurse practitioners. Stores are very customer friendly and are easy to approach and shop. The company has strong brand equity. The website also hold a large variety as well as providing tips for using a product. CVS is one of the few companies to be loyal and strong about CSR (corporate social responsibility). Though the revenue is growing, CVS still seem to have instability in the growth of the stores. The different locations have had many cases of armed robberies and there are no efforts into putting more security. There are few cases of government regulations and lawsuits that the company has faced as well. CVS has a lot of potential and has many opportunities to become bigger and better company. It could expand and improve their...
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...Question 1 1. Differences in operations ACTAVIS | DRL | * Selling, General and Administrative expensesThe SGA expenses have risen as a percentage of the Net Revenues of Actavis in 2012 by 55%. The number of employees have gone up from 6686 to 17700 (refer Employees sub-topic in Page 22 of 2011 and 2012 10K reports) through these acquisitions and this has significantly contributed to the increase in the Administrative expenses of the organization. | * Selling, General and Administrative expensesThough SGA expense has significantly risen in 2012 when compared to the rise in 2011, the amount spent on selling, general and administrative activities has steadily reduced in proportion to the net revenue of the organization each year.This increase was primarily on account of the following: * increased personnel costs, due to annual raises and new recruitments; * higher distribution costs, due to increases in sales volumes and freight cost increases; and * impact of depreciation of the Indian rupee against multiple currencies in the markets in which we operate.(Refer Pg 72 in 2012 20F Application) | * Research and DevelopmentActavis has more than doubled its investment in R&D within the organization over the years since 2009 (Pg 5). From 2011 alone Actavis’s internal investment has risen by 36%. Close to 7% of the Net revenue is maintained as R&D expense every year. | * Research and DevelopmentResearch and development expenses increased by 17% during...
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...Fernando Adams, and Eric Gamboa Financial Analysis Financial Analysis Part 1: Income Statement Analysis There was a large jump in total revenue between 2011 and 2012, moving from $152 to $185 billion. This slightly increased in 2013 and again 2014, where it was reported to be $190 billion. The increase from 2011 to 2012 was mirrored by 21% increase in cost of goods sold, moving from $125 to $152 billion. These figures have remained steady since that jump, at $156 billion today. Volkswagen’s total revenue was significantly higher than Ford’s and GM’s for the most-recent fiscal year. At $144 billion and $155 billion, respectively, VW’s total revenue is 40% ‒ 50% higher for 2014, at $217 billion. The cost of goods for GM was closer to VW’s, at $142 billion vs. $156 billion, which proved very interesting. This results in a gross profit for VW that is almost three times as high as that of GM ($36 billion vs. $13 billion). Operating expenses for VW were significantly higher than Ford and GM and totaled more than the two American companies combined. Income tax expense is another significant difference. For the most-recent period, VW’s income tax expense was $3.3 billion, and a total of $11.7 billion for the combined four-year period. Due to lower sales and other factors, both Ford and GM had significant negative income tax expenses within the same period. For the period 2011 to 2014, Ford’s income tax expense was ‒$8.5 billion. Comparatively, GM’s was ‒$32.5 billion. Overall,...
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...Operating Leverage vs. financial leverage: Laurence A high degree of Operating Leverage means that a relatively low change in sales will result in large change in EBIT. If all things are held constant, the higher the firm’s fixed cost the greater its Operating Leverage. In Jacque’s words, this has to do with volatility of the top line. Those firms are usually highly automated, capital intensive, hire highly skilled individuals (read pay them huge salaries), and engage into costly R&D activities. Effects of Operating Leverage on Business Risk: (if all other things held constant) the higher a firm’s Operating Leverage, the higher its business risk. This is because in lower economical cycles, the firm will still be incurring its fixed cost. However, remember that higher risk usually commands for a higher return on investment. Financial leverage is the use of debt to finance the activities of a business. Financial risk is the additional risk put on the shareholder when management decides to finance with debt. The more debt a firm takes on, the more concentrated the business risk on the shareholder because the shareholder is a residual claimant. This results in a higher expected rate of return on the investment by the shareholder. Consequences of an increase in leverage (Leverage ↑): * Expected ROE ↑ * Stockholder risk ↑ * Standard deviation ↑ * Coefficient of variation ↑ 2) Cash-Flow statement and valuation: Natalia Cash-Flow Statement and valuation Cash-Flow...
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...ANALYSIS OF FINANCIAL STATEMENTS OF COCACOLA COMPANY INTRODUCTION Coca-Cola Company is the largest distributor, manufacturer, and marketer for the non-alcoholic syrups and beverage concentrates in the world and builds its own trademark in the world. Contributes to around fifty-two billion servings of beverages every day worldwide and it will continue to rise in the followings years due to the booming in the nonalcoholic beverage business. This paper purposely tries to analyze published financial statements of coca-cola company so as to offer relevant recommendations on efforts to be made to ensure increased productivity of the company as well as ensuring that the company is a global market leader. Part 1 of the paper tries to analyze and give an overview of regulatory framework of IFRS and FA regulatory framework of Kenya. The other part of the paper analyzes the financial statements using ratios which are categorized in six categories namely; profitability, liquidity, activity, gearing and market ratios. 1.1 International Financial Reporting Standards (IFRS) under IASC Foundation and IASB with its committees. The IFRS Framework describes the basic concepts that underlie the preparation and presentation of financial statements for external users. The IFRS Framework serves as a guide to the Board in developing future IFRSs and as a guide to resolving accounting issues that are not addressed directly in an International...
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...to report this information to external parties [managerial accounting is to use this information internally]. Financial statements are management’s report to owners. 3 profit-seeking entities: Sole proprietorship simple to establish, owner controlled Unlimited liability (no legal separation). All profits and losses belong to owner, report income on tax returns. Business ends if owner dies, can sell it. Easy and inexpensive to operate. No reporting requirements. Partnership simple to establish, shared control, broader skills and resources Two or more owner-managers. Want a formal agreement covering $ contributions, workload, withdrawals, decision-making. Each partner’s net income reported on his or her personal tax form. No tax advantage. General Partners: have unlimited liability (person A and B legally connected). Limited Partners: limited involvement, limited liability (LLP at the end of the name). Ends if the partners die or dissolve it, can try to sell your portion. Corporation Easier to transfer ownership, easier to attract investors, no personal liability, tax advantages possible. Separate legal entity from owners. Owners called shareholders. Limited liability. Can only lose investment, not personal assets. Taxed separately from owners: corporate income tax. Tax deferral if income not paid out but double taxation. Indefinite life: owners can sell their shares, doesn’t affect operations. Most complex...
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...Sample Statements and Charts Write-Up CS™ or Trial Balance CS™ version 2007.x.x TL17346 (04/24/07) Copyright Information © Text copyright 1998-2007 by Thomson Tax & Accounting. All rights reserved. © Video display images copyright 1998-2007 by Thomson Tax & Accounting. All rights reserved. Thomson Tax & Accounting hereby grants licensees of CS Professional Suite software the right to reprint this document solely for their internal use. Trademark Information The trademarks used herein are trademarks and registered trademarks used under license. All other brand and product names mentioned in this guide are trademarks or registered trademarks of their respective holders. Contents Sample Financial Statements .......................................................... 1 Write-Up Sample Client (CSWRI01) .................................................................................3 Balance Sheets ...............................................................................................................5 BalanceSheet-CurrentYear.fsr...................................................................................5 BalanceSheet-CurrentYear-PriorYear.fsr..................................................................7 BalanceSheet-CurrentYear-2Column.fsr...................................................................9 Income Statements .......................................................................................................11 IncomeStatement-CurrentYear...
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...ZIMBABWE SCHOOL EXAMINATIONS COUNCIL (ZIMSEC) ADVANCED LEVEL SYLLABUS BUSINESS STUDIES 9198 EXAMINATION SYLLABUS FOR 2008-2012 2 BUSINESS STUDIES ZGCE Advanced Level 9198 CONTENTS Introduction Syllabus Aims Assessment Objectives Scheme of Assessment Curriculum Content Notes for Guidance Resource List PAGE 2 2 2 3 3 10 25 3 INTRODUCTION 1.1 The aim of this syllabus is to enable Centres to develop Business Studies courses that are suitable for Advanced Level candidates. The syllabus contains largely the same body of curriculum content as the Management of Business Advanced Level syllabus (9368) and AICE Business Studies syllabus (0128) which previously were examined by UCLES. Although no previous study of the subject is assumed by the syllabus, it would be recommended that students should have done 'O' Level Business Studies 1.2 1.3 2 SYLLABUS AIMS The syllabus is intended to lead to courses that will encourage students to: 2.1 2.2 Understand and appreciate the nature and scope of business and its role in society; Develop critical understanding of organisations, the markets they serve and the process of adding value. This should involve consideration of the internal workings and management of organisations and, in particular, the process of decision making in a dynamic environment; Be aware of the economic, environmental, ethical, governmental, legal, social, technological etc issues associated with business activity; Develop skills in:...
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...ACCOUNTING CANADIAN GAAP – IFRS COMPARISON SERIES Issue 15: IAS 1 Presentation Of Financial Statements Both IFRS and Canadian GAAP are principle based frameworks, and from a conceptual standpoint, many of the general principles are the same. However, the application of those general principles in IFRS can be significantly different from Canadian GAAP. Therefore, to understand the magnitude of the differences between IFRS and Canadian GAAP, it is essential to look beyond the general principles and look at the detailed guidance provided in the standards. This is our fifteenth issue in a series of publications, which will provide detailed information on the key differences between IFRS and Canadian GAAP. This issue will focus on the significant differences between current Canadian GAAP requirements for financial statement presentation and the IFRS requirements. These differences relate mainly to: • • • • • Presentation of financial position and equity; Presentation of comprehensive income; Presentation of cash flows; Other Presentation Issues; and First Time Adoption Issues related to Presentation of Financial Statements. Be advised that this publication is a guide to the differences between Canadian GAAP and IFRS and is not meant to be a comprehensive manual. Please contact a BDO representative for specific details and information. Introduction The requirements of financial statement structure and content are more prescribed under IFRS than Canadian GAAP; however, fundamentally...
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...Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless Rates and Risk Premiums Chapter 8: Estimating Risk Parameters and Costs of Financing Chapter 9: Measuring Earnings Chapter 10: From Earnings to Cash Flows Chapter 11: Estimating Growth Chapter 12: Closure in Valuation: Estimating Terminal Value Chapter 13: Dividend Discount Models Chapter 14: Free Cashflow to Equity Models Chapter 15: Firm Valuation: Cost of Capital and APV Approaches Chapter 16: Estimating Equity Value Per Share Chapter 17: Fundamental Principles of Relative Valuation Chapter 18: Earnings Multiples Chapter 19: Book Value Multiples Chapter 20: Revenue and Sector-Specific Multiples 3 16 37 81 121 152 211 246 311 341 373 425 450 487 533 593 637 659 718 760 Chapter 21: Valuing Financial Service Firms Chapter 22: Valuing Firms with Negative Earnings Chapter 23: Valuing Young and Start-up Firms Chapter 24: Valuing Private Firms Chapter 25: Acquisitions and Takeovers Chapter 26: Valuing Real Estate Chapter 27: Valuing Other Assets Chapter 28: The Option to Delay and Valuation Implications Chapter 29: The Option to Expand and Abandon: Valuation Implications Chapter 30: Valuing Equity in Distressed Firms Chapter 31: Value Enhancement: A Discounted Cashflow Framework Chapter 32: Value Enhancement: EVA, CFROI and Other Tools Chapter 33:...
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...observed practice. For example, positive accounting theory seeks to explain why firms continue to use historical cost accounting and why certain firms switch between a numbers of accounting techniques. • “Prediction” of accounting practice means that the theory predicts “unobserved phenomena”. Watts and Zimmerman start their book with a fundamental statement of The Role of Theory (Chapter 1).They asserts that the objective of positive accounting theory is to explain and predict accounting practice,(p.2) “Unobserved phenomena” are not necessarily future phenomena; they include phenomena that have occurred, but on which systematic evidence has not been collected. For example – Predicting the reaction of firms to a proposed accounting standard and an explanation of why firms would lobby for and against such a standard, even though the standard has already been released. Testing these theories provides evidence that can be used to predict the impact of accounting regulations before they are implemented. PAT has an economic focus and seeks to answer such questions – what is the effect of reported financial statements on share price, for example? For the above issue, PAT is based on...
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...www.thetestpreps.com CRITICAL CONCEPTS FOR THE 2014 CFA® Approximation formula for nominal required rate: ExAM Exprctrd return, variance of2-S1ock portfolio: THICAL AND PROFESSIONAL ANDARDS Professionalism Knowledge of the Law, Independence and Objectiviry Misrepresentation. Misconduct. Inregrity of Capiml Markers Material Nonpublic Information. Market Manipulation. Duties to Clients Loyalty. Prudence. and Care. Fair Dealing. Suitability, Performance Presentation. Preservation of Confidenrialiry, Duties to Employers Loyalty. Additional Compensation Arrangements. Responsibilities of Supervisors. Investment Analysis, Recommendations, and Action Diligence and Reasonable Basis. Communication wirh Clients and Prospective Clients. Record Rereruion. Conflicts of Interest Disclosure of Conflicrs. Priority of Transacrions. Referral Fees, Responsibilhies as a CFA lnstirute Member Or CFA Candidate Conduct as Members and Candidates in the CFA Prograrn. Reference to CFA Institute. the CFA Designation. and the CFA Program. Performance Standards E(R) ~ RFR + fP + RP Means Arithmetic mean: sum of all observation values in sample/population. divided by II of observations. Geometri« "mill: used when calculating investment returns over multiple periods or ro measure compound growth rates. Geonmrir /liMn return: E(Rp) = w"E(RA) + wBE(Rs) I (A) (B) I (C) (D) (A) ,.ar(Rp)= wl\u!(R\)+w~u2(R8) +2w \ w8(7{RA )U(RR)P(R Normal Distributions Norma] distribution i~ completely...
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...for this reason, during creative problem solving and brainstorming sessions groups often strive to suspend judgement until they have entertained ranges of plausible scenarios and responses to them. The initial scenario we envision may be woefully inadequate and our initial responses significantly inferior to others we can imagine. As part of our inherent capacity to memorize, we should always strive to challenge our beliefs through a feedback mechanism. To test our existing constructs with new potentially better ones. It is with this in mind that we explore the classic or naive discounted cash flow modelling techniques. 1 Introduction The essential steps for a DCF are: 1. Gather information: Use historic Income, Balance Sheet & Cash Flow Statements to calculate ‘earnings’, ‘cash flows’ or any other variable you’re trying to obtain data for, 2. Generate Forecast Assumptions: based on our historical observations generate a starting cash flow range, growth rate and discount rate assumptions . . . 3. Actually forecast...
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...BUSINESS COMPETITION PROPOSAL WRITING Background Information 2 Why You Need a Business Plan 1) Obtain funding 2) Provide a plan for early development 3 What Should be Included in a Business Plan 3) An examination of the product or service (advantages) 4) The market (customers) 5) The industry (competitors) 6) Marketing (distribution and pricing) 7) Production (costs for process) 8) Management (people) 9) Financing (equity/debt structure) 4 Incorporate the Ten Guiding Principles into Your Business Plan 10) Keep in mind your audience 11) Make it easy to read 12) Your approach should be market driven 13) Qualify the competition 14) Present your distribution plan 15) Exploit your company’s uniqueness 16) Emphasize management strength 17) Present attractive projections 18) Zero in on possible funding sources 19) Close with a bang Executive Summary 5 Describe your product or service and your target market 6 Define how and why you will be successful 7 Include an overall financial picture (history of earnings, projected earnings, and use of proceeds). 8 Provide a management profile (with appropriate descriptions of why you and your staff are qualified to run the company). Introduction (History Brief) 9 What the company does 10 Why it exists 11 Its current...
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