for the company over recent years, as the firm has succeeded in boosting net income to more than $6.5 billion in the most recent fiscal year (Honeywell Annual Report, 2016). Organizational culture is one of the most important aspects of any firm's success (Kissack, Callahan, 2010). As any team leader will tell new employees, it is the small things that count and that can quickly add up -- either in one's favor or to one's disadvantage. For instance, Greg Smith (2012) gives a perfect anecdote about being a trader for Goldman Sachs' U.S. derivatives division on Wall Street: for… Continue Reading...
cheaper the stock is viewed to be), 2) the net profit margin (Net Margin = ( net income or Loss) / Sales). For Amazon, this is a hard ratio to apply as the company has dipped its toes into so many sectors -- it is doing cloud services, retail, streaming, and now brick and mortar pop-ups. For eBay it is more applicable. 3) the return on assets is another profitability ratio that might interest creditors -- and both apply to Amazon more than they do to eBay. The P/E ratio of Amazon is high. Its stock trades at a 189… Continue Reading...
Microsoft in term financial performances between 2013 and 2015. Apple net income increased from $37.0 Billion to $53.3 Billion between 2013 and 2015. However, Microsoft net income decreased from $21.8 Billion to $12.1 Billion between 2013 and 2015. Although, both companies increase the values of the total assets during the period, however, Apple recorded more revenue than Microsoft between 2013 and 2015. As being revealed in Table 2, Apple performed excellently in the ROE than Microsoft. The ROE of Apple Inc. increased from 30.64% to 47.86% between 2013 and 2015. Contrarily, the ROE of Microsoft declines from 30.09% to… Continue Reading...
external funding. For instance, as of 2014, Coke has a long-term debt of $20,000 million with a net income of $50,000 million (Agarwal, 2013). For the company, the debt ratio is optimal and maximizing its market capitalization value within their manageable debt levels. Coke has a long-term debt of less than a year's current net income. Therefore, a single year earnings could be used to settle the debt. As for Intel, it adheres to the POT, especially because of its high-risk industry. Though the firm is large, factoring that the technology is constantly evolving, Intel struggles to remain relevant.… Continue Reading...
that equity is higher risk -- debtholders are paid out before net income, whereas equity holders only are paid out after net income. As such, equity typically carries with it higher risk and the expected return on equity therefore needs to be higher. The cost of debt is 5%, though the effective yield is 4.717%, as derived using a bond calculator (Moneychimp, 2016). This figure reflects the fact that the bond is priced at a slight premium at present. Given the premium, the yield on the bond will be slightly lower than the coupon rate, because the bond will… Continue Reading...
the company total revenues also increase. For example, the company recorded the net income of $2.94 billion at the end of 2014 fiscal year, however, the net income increased to $3.68 billion at the end of 2015 fiscal year. However, an increasing number of non-web applications are serving as an alternative to Facebook. For example, the smartphone is increasingly being used to chat and provide some other functions that Facebook offers. Moreover, the Chatsim application assists users to chat and send message free of charge without the internet. Despite an increase in the non-web presence, Facebook is still a… Continue Reading...
in 2001. The next year, the company restated (reduced) previously reported net income by $534 million for the period 1997 -- 1999. Pwc withdrew its financial statement audit reports for those years. Do you believe that financial restatements and withdrawing an audit report are prima facie indicators that a failed audit has occurred? Explain. I believe that financial restatements and withdrawing an audit report are prima facie indicators that a failed audit has taken place. Financial restatements subvert the relationship between external auditors and their consumers because shareholders perceive restatements, at least to some extent, as an audit failure.… Continue Reading...
Africa and Middle East. As of 2015, the firm's revenues surpassed $47 billion, with net income and assets exceeding $2 billion and $37 billion, respectively. The firm is traded on the New York Stock Exchange, an S&P 500 component, and employs more than 300,000 employees (FedEx, n.d.). HR Practice Requiring Change FedEx has severally been named as one of the best organisations to work for in the U.S. thanks to its innovative HR practices, particularly in the areas of recruitment and selection, training and development, growth opportunities, employee communication, compensation, performance appraisal, and workforce diversity. The firm enjoys admirable… Continue Reading...
is presented below in table 3.
Table 3; it profit for Starbucks 2012-2016
net income (before tax) 1,384.0 8.0 2,068.0 2,757.0 2,818.0 Net profit margin 10.41% 0.05% 12.57% 14.39% 13.22% This measure is highly indicative of the way in which the organisation has been operating. The profit appears to be generally improving, a 10.41% in 2012, then declining in 2013 to 0.05%. It is known that 2013 was a difficult year, but the subsequent years appear to indicate there has been an improvement. In 2015 the net profit was 14.39%, and while the percentage level has declined to 13.22% in… Continue Reading...
The vertical analysis shows some interesting things. First that the bottom line reveals basically nothing -- the net income in 2013 is entirely a reflection of the litigation charge for a lawsuit the company lost. So to understand the actual trend in the business one needs to look at the other line items. Top line revenue is increasing at a fairly rapid rate, up 10% in 2014 and almost 12% in 2013. This reveals that Starbucks in this period was in a period of steady, rapid growth. The growth was spread across different business units as well, indicating… Continue Reading...
in the 2016 financial year was 946.47 million Kuwaiti Dinar. The company experienced a net income growth of 5.26% with a gross income of 108 million Kuwaiti Dinar (The Wall Street Journal, 2017). Industry Overview and Americana's Market Position Within the food industry, Americana Group operates and competes on two fronts, which are consumer foods and restaurants. Americana is the franchise partner within the region for international food brands like Kentucky Fried Chicken (KFC), Pizza Hut, Taco Bell and Costa Coffee. On the consumer foods front, Americana Group operates Americana Meat, which has come to be the biggest meat-processing… Continue Reading...
Compare the long-term tax benefits and advantages of each type of reorganization, and recommend the type of reorganization that will be most beneficial to the client Reorganization takes into account any company restructuring that may be tax-free under the United States law section 386. It encompasses the notion of acquiring new entities in a manner that all financial transactions are non-taxable. There are certain general requirements that have to be met in order to qualify. To begin with, it must be a plan of reorganization, must have a sound and fitting business purpose, and must satisfy continuity of interest as… Continue Reading...
into consideration, it is possible to calculate the operating cash flow:
Less: Variable Costs
Less: Fixed Costs
Tax @ 38%
net income $8,744,790 $4,373,790 $9,860,790 $10,226,590 Add: Depreciation $13,575,500 $23,265,500 $16,615,500 $11,865,500 OCF $22,320,290 $27,639,290 $26,476,290 $22,092,090 The net present value of the project is positive and therefore the project should be accepted. The payback period is calculated as follows: = 3 + (18,564,130 / 22,092,090) = 3.84 years Profitability index = = 1.005 The equation for IRR is: The IRR is 15.6 percent Taking into account the calculations undertaken above, the project should be undertaken since it has a positive… Continue Reading...
past couple of years. This resulted in very high net income in FY2015, but the decline in revenue in 2016 resulted in a decrease in net income over the previous year. Whether the decline was a temporary one-year phenomenon or not remains to be seen. One of the most important elements in the cash flow statement is whether the operating cash flows are aligned with the revenue numbers, and in the case of Verizon they are. FY2016 was the weakest year, and FY2015 the strongest year, in terms of operating cash flows. Thus, the revenue numbers are not unduly… Continue Reading...
9.12 percent in 2003. In the same manner, the net income of the company impressively improved from -147.34 percent to 35.51 percent. On the other hand, as for UPS, the sales of the company increased from 7.65 percent in 1992 to 10.37 percent in 1997 but considerably declined to 2.04 percent in 2001. In the same manner, the net income of the company declined from 56.86 percent in 1992 to -8.93 percent in 2003. The stock price of the company mirrors the perception of the investor of its capability to earn and develop its profits in the future. In… Continue Reading...
impressive—beating analysts’ expectations with a “reported revenue of $88.3 billion, up 13% year over year. net income was $20 billion, with earnings per diluted share of $3.89, up 16% and also an all-time record” (Spangler, 2018). This was up from the last fiscal quarter of 2017 in which Apple “posted quarterly revenue of $52.6 billion, an increase of 12 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.07, up 24 percent. International sales accounted for 62 percent of the quarter’s revenue” (PR, 2017). Annual sales for Apple over the last 3 years have been in… Continue Reading...
6. How does net cash flow differ from net income and why is that difference relevant to financial decision making? An entity’s net income is obtained by finding the difference between the profit before tax and the income tax provision. The cash flow of a firm “generally differs from its profit after tax because some of the revenues/expenses shown on its profit and loss account may not have been received/paid in cash during the year” (Chandra, 2008, p. 49). It is important to note that for decision making purposes, while the net income a firm reports in its… Continue Reading...
furniture and inventory. It is calculated by dividing Annual net income/Total assets. The Return On Equity (ROE) on the other hand is used to show whether the company is growing in value at the acceptable rate. Investors look at some fundamental ratios and the most important is probably the return on equity. This is the basic test of the effectiveness of the management in using the investors’ money (McCLure B., 2017). Financial leverage This is the use of debt to acquire additional assets. It is also known as trading on equity. Leverage us employed in order to avoid using… Continue Reading...
the Coca Cola Company has declined as shown below
net income Applicable to Common Shareholders $6,527,000 $7,351,000 $7,098,000 $8,584,000 Conclusion It is evident that Coca Cola needs to reinvent its product lines and diversify more. The increased health issues indicate an imminent decline in the performance of the soft drinks; the main products of the Coca Cola Company. The company has no choice other than to diversify so as to generate niche-oriented products that target markets will accept easily. References Chokheli, E. (2015). Role of the Organizational Design in the Company’s Success. European Scientific Journal, 1857–7881. Coca… Continue Reading...
Market Share (%)
Consumer Net Price ($/kWh)
Unit Direct Cost ($/kWh
Annual Revenue ($/Year)
Annual net income ($/Year) $35.85M $3.65B Process Development Expenditure ($/Yr) $29.08M $696.49M Unit Cost ($/Peak Watt) $2.47 $2.04 Gross Margin (Fraction of Revenue) .26 .46 Return on Sales (Fraction of Revenue) .07 .26 Appendix 2 SunPower Other Solar Market Share (%) 8.46% 91.54% Consumer Net Price ($/kWh) $0.13 $0.16 Unit Direct Cost ($/kWh $0.08 $0.07 Annual Revenue ($/Year) $1.71B $25.28B Annual net income ($/Year) $110.86M $8.13B Process Development Expenditure ($/Yr) $78.09M $1.21B Unit Cost ($/Peak Watt) $2.08 $1.75 Gross Margin (Fraction of Revenue) .26 .51 Return on Sales… Continue Reading...
The table below compares JAKKS’s organizational performance within a two year period.
Total Sales (in ‘000’)
net income (in ‘000’) $23,170 $1,249 ROA 0.05 0.003 ROE 0.15 0.009 Table 1.1 b. Group Level The company is made up of various divisions. The most prominent divisions have got to do with the regions in which the company makes its sales. Currently, the company has six primary sales regions. These include the United States, Asia, Latin America, Canada, Australia, and Europe. As per the most recent financial statement disclosures, the United States contributes the lion’s share of net sales, i.e. 77%… Continue Reading...
asset turnover is improving is also a positive sign, in terms of the cash conversion cycle. If net income and EPS are up, that is also good, though as a creditor I\'m much more concerned with free cash flow and whether my debt is subordinated – but it is definitely a good sign that these numbers are going in the right direction. However, there are definitely some other things I would need to know. One is that the financial statements will tell me the raw numbers. It is not actually relevant that net income is up if Jason\'s financials… Continue Reading...
financially stable based upon the previous year’s income statement which lists that the organization is making a net income of over seventy thousand dollars. The organization’s total assets are over forty thousand dollars and the total liabilities are slightly above twelve thousand, leaving over twenty-eight thousand in stakeholder’s equity. Action Items Both the Balance Sheet and the Profit & Loss statement indicate that Tim is in sufficient financial health to invest in improvements that need to be made in the business. For example, if Tim borrowed five thousand dollars as long term liabilities, he could easily cover a POS… Continue Reading...
a price level of $0.16, SunPower has a market share of 2.87% and an annual net income of $45.08M. The other market participants in existence at the time have a set module price of $0.15 which is lower than that of SunPower. When SunPower increases the module price to $0.17, and other existing players in the market maintain their price level at $0.15, its market share falls to 2.54% and its net income increases by 61%. The said price increase despite the slashed market share could be explained by increased profit for every unit sold. In this case, SunPower… Continue Reading...
in Starbucks’ assets, the company was able to generate 5 cents and 6 cents worth of net income in 2017 and 2016 respectively. This means that in 2016, Starbucks was more efficient in the conversion of investments into profits than in 2017. The company’s management was therefore not as efficient in 2017 as they were in 2016 in the generation of earning using the company’s assets. Lastly, we have the return on equity ratio. This particular ratio, as Baker and Powell (2009) point out seeks to measure how much return a business entity is earning for each invested dollar.… Continue Reading...
Share for 2014 and 2015
Earnings per share, as Heisinger (2009) points out, “indicates how much net income was earned for each share of common stock outstanding” (636). For the year 2014 and 2015, Walmart’s EPS was $4.88 and $5.05 respectively (Morning Star, 2018). Essentially, were the company to distribute all of its profits, this is the amount that would be allocated to each of Walmart’s share. The increase is indicative of better profitability in 2015, as compared to 2014. References Bloomberg (2018). Company Overview of Walmart Inc. Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=313055 Heisinger, K. (2009). Essentials of Managerial Accounting. Mason, OH: Cengage… Continue Reading...
cost on sales over a period of time, or the net income trends as a sales percentage of any other ratios, then this would be carrying out a quantitative analysis through the use of ethnography theory. This is not the only avenue for determining whether making an investment is appropriate. It is however vital in the comprehension the target market better. Conclusion The application of the theory is fundamental since the researcher may utilize test instruments for the purpose of deriving figures that can be analyzed statistically. The researcher can also test the hypothesis through the surveying participants and… Continue Reading...
in 2015 to $379.8 million in 2016 and further up to $838.7 million in 2017.
The net income delineates the profit generated by a corporation subsequent to paying off all of its costs. The net income of Netflix gradually increased in the past year from $122.64 million in 2015 to $186.68 million in 2016 and further up to $558.93 million in 2017. Shareholders take into consideration this particular amount as it delineates the returns that they may obtain from the company in terms of dividends. In addition, other stakeholders such as investors examine the net income as it portrays the… Continue Reading...
Introduction In the business actuality of the present day, where knowledge management together with intangible assets are fundamental sources of competitive advantage, the individual action and behavior of employees ranging from first-line personnel to management can facilitate the success or downfall of an organization’s reputation. This has a substantial effect on share value, the capability to attract and sustain consumers, investors, personnel, or clients, and the risk of violating compliance (Jamshidinavid and Kamari, 2012). Addressing business ethics and responsibility issues within a business entity begins the compliance of the pertinent legislations and codes of practice. As a provider of business… Continue Reading...
The char below shows the operating profit of Netflix for 2019, 2020 and 2021.
5. net income Projection In total, we project that the net income generated by Netflix, Inc. will increase gradually for the next three financial years. In 2018, the company generated a net income of $1.21 billion. It is projected that this amount will increase to $1.47 in 2019, further up to $2.141 in 2020 and further up to $3.20 billion in 2021. The illustration in Appendix I below shows the projected consolidated income statement for Netflix, Inc. for the next three financial years. Part B Projections… Continue Reading...
Costco had total revenue amounting to 141.5 billion for the year ended September 2018. The net income figure for the same period was captured as 3.1 billion. Some of Costco’s key competitors include, but they are not limited to, Wal-Mart and Home Depot. Resources In basic terms, Costco’s tangible resources are inclusive of some of its current assets as well as fixed assets. More specifically, the company’s fixed assets as per its most recent financial statements (i.e. for the year ended September 2018) are inclusive of: land (6,193 million); buildings and improvements (16.1 billion); equipment and fixtures (7.2 billion);… Continue Reading...
Nike’s revenues in 2018 were $36.397 billion, up nearly 6% from the year previous. net income was $1.933 but this was down significantly from the prior year, as the company recorded a much higher income tax expense. Nike competes in the sports apparel industry, which is estimated to be worth around $184.6 billion worldwide, meaning that Nike holds about a 19.7% share. The industry is mature but still growing, with a CAGR of 4.3% over the past five years. Nike’s major competitors are all large companies as sophisticated as Nike is, including Adidas, Puma, Fila, but also Umbro, Ralph… Continue Reading...