The Microsoft Corporation Cash Availability and Debts According to the Balance sheet as on 2002,the current assets of the company have increased from 39,210 to 48,576 (mil $) in year 2002 as compared to its current liabilities which amount to 12,744 (mil $). So, the company has more than four times of its current assets than current liabilities. Therefore company has adequate amount of cash to pay out its current liabilities on urgent basis. The Company’s Progress Income statement for 2002 reveals Net Income= 2000= 9,421 in 2001 were = 7346 and in 2002=7829(mil $). Although the revenue figure is raised each year but the costs of revenues have varied the incomes. Company’s cash flow statement 2002 reveals cash from operating activities in 2000 was=11426, 2001=13422, 2002=14509. (Mil $) Performance Rating To the President, Microsoft Corporation. Sir, Since your Company’s revenue growth rate was 16% in fiscal 2000, 10% in fiscal 2001, and 12% in fiscal 2002.It is continuously accelerating. After closely and objectively analyzing your company’s performance from its Current financial statements we have arrived on the conclusion to assign ‘A-Grade’ to you for your company’s solid performance and consistent productivity. The current assets of your company well surpass the current liabilities. Revenue and net income trend is continuously elevating as well as cash from operating activities. We are hopeful of its continuous progress and constructive development in years to come. The EXXON Mobil Company Cash Availability and Debts (in Mil $) According to the Balance sheet as on 2002, the current assets of the company’s current assets= 38,291 as compared to current liabilities which are 33,175 which means they have current assets... ... middle of paper ... ... company’s financial statements it is obvious that Net income for consecutive three years is following an upward trend and therefore growth is accelerating on consistent basis. Cash flow from operating activities, which fell last year by 1,938 (000 $) have boosted this year to 165,613. But still the company’s current assets fall well short of its current liabilities. For this reason we have assigned ‘B-Grade’ to your company after analyzing its financial statements of the year 2002. References Microsoft Corporation analysis made from ‘Microsoft Annual Report 2002 & Form 10-K’ Exxon Mobil Company’s analysis retrieved from the ‘Summary Financial Reports 2002’ from www.exxonmobil.com on 14/05/2003 http://www.argosycasinos.com/corporate/investor_information2/02_annualreport/operations.html for Argosy Gaming Company’s financial information, retrieved on 14/05/2003
Prior to the year of 1999, Exxon and Mobil were the two largest American oil companies, which were direct descendants of the John D. Rockefeller’s broken up Standard Oil Company. In 1998 Exxon and Mobil signed an eighty billion dollar merger agreement in hope to form Exxon Mobil Corporation, the largest company ever created. Such a merger seems astonishing, not only because it reunited parts of Rockefeller’s Standard Oil Company, but also because it would be extremely difficult for the Federal Trade Commission (FTC) to approve this merger due to its size and importance in the oil market. In fact, it took the FTC an entire year after the merger was proposed to make a decision due to its rigorous analysis in the product and its geographic market, the concentration of the oil market, the potential anticompetitive effects of the merger, the effects towards their growth and labor force, and lastly, the likelihood of entry and the efficiencies that may affect anticompetitive concerns. Although all of these notions are played a role in the analysis of the merger, it is important to remember that the merger’s result efficiencies did outweigh the the anticompetitive risks that were involved, especially since the oil market was headed towards decreasing prices to expand production.
Looking at the individual ratios seen in exhibit 1 and comparing it to the industry average shown in exhibit 2 gives a sense of where this company stands. Current ratio and quick ratio are really low and have been decreasing. For 1995, the current ratio is 1.15:1, which is less than the industry average of 1.60:1, however to give a better sense of where this stands in the industry, as seen in exhibit 3, it is actually less than the average of the bottom 25% of the industry. The quick ratio is 0.61 is less than the industry is 0.90. Both these ratios serve to point out the lack of cash in this company. The cash flow has been decreasing because, it takes longer to get the money from customers, but the company still needs to pay for its purchases. Also, the company couldn’t go over the $400,000 loan limit, so they were forced to stretch their cash.
Exxon Mobil Exxon Mobil is listed as one of the worlds largest Fortune 500 companies according to Fortune Magazine, 2006. Because of its size, I became interested in this company for my research paper on corporate social responsibility. Exxon Mobile has a rich history that dates back to 1859. It all started when two individuals drilled an oil well in Pennsylvania. In 1870, Rockefeller and his associates formed the Standard Oil Company.
The two companies that our team selected were Lester and Shang-wa electronics. We will review cash flows for each company and attempt to identify how much cash was generated by operating, investing and financing activities. Then we will identify some significant interval events the effected the company’s cash position and explain both company’s apparent strategies. We will review some objectives from week two and discuss some additional insights and questions that may have arisen. Finally, even though it was not required we will attempt to describe the optimal solution assuming both Lester and Shang-wa can come to an agreement.
There are many valuation methods that could be used to evaluate this company. Finding a method that valuates the stand-alone value is difficult. The stand-alone value should be dependent upon the firm’s own assets and projected future income. We decided to evaluate this company based upon two methods: The Discounted Cash Flow Method and the Comparable Companies Method.
Quick Ratio – Constant grow for the last three years. From 3.56 in 2001 to 3.76 in 2002 to 4.17 in 2003. The reason of grow is constant increase in Current Assets.
The objective of this report is to give an overall view on research and analysis to regards of two companies, Wm Morrison Supermarkets Plc and Tesco Plc that I have chosen for. In this report, I will be comparing two companies’ financial analysis based on their comprehensive income and balance sheet for one year; and also will be comparing their generating cash ability, cash management and financial adaptability based on statement of cash flows for the past two year and also determine whether the two companies have the ability to repay their debts to their creditors, generating into cash and going concern which related to finance.
To collect relevant data, the annual percentage change in net income per common share diluted, net income/net revenues, the major income statement accounts to net revenues, return on stockholders’ equity, the price/earnings (P/E) ratio, and the book values per share for each year numbers were examined. In order for Sun Microsystems to see a greater return in its bottom line assets, it must consider an alternative approach in operating its organization.
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
Evaluating a company’s financial condition can be done by looking at its profitability or its ability to satisfy long-term commitments. These measures can be viewed through an analysis of a company’s financial statements, including the balance sheet and income statement. This paper will look at the status of Scholastic Company’s (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial ratio calculations and an analysis of the notable trends. It will also discuss the profitability and long-term borrowing positions of the firms discussed.
The inventory turnover decreased from 3.8 to 3.59. This is explained by the higher increase in the average inventory (37%) than the increase in cost of sales (29%) during 2005. This means that the rate at which inventory is sold is dropping
In reviewing the company’s balance sheet, the current assets and liabilities were reviewed and liquidity ratios were calculated. The capital structure and the fixed and intangible asset accounting of the company were also reviewed. Off-balance sheet items such as leases and contingent liabilities were reported and noted. All of these aspects of the balance sheet were reviewed in order to do a proper analysis of the company’s balance sheet.
For our Sample Co. there are several ratios that are low, for the average manufacturing company. The ROI and ROE are below average as are the current ratio and the acid-test ratio. The P/E ratio is $42 / $3.51 = 12, which seems very good and both the debt ratio and debt to equity ratio are within the guideline. With the good and bad of these ratios hard to tell what sort of industry this is. With the ROI, ROE, and acid-test low like they are it doesn't seem like a retailer/merchandising company, and a e-commerce for 2000 would probably have a P/E greater than 12. What that leaves is an international service company of some kind, so I'll go with that.
In the past, the company performance was measured by asking ‘how much money the company makes?’ To a certain extent, they are right because gross revenue, profitability, return on capital, etc. are the results that companies must bring to survive. Unfortunately, in today business if the management focuses only on the financial health of the company, numerous unwanted consequences may arise.
The current ratio and quick ratios for the year 2003 are at 2.5 and 1.3, which are both higher than the industry average. The company has enough to cover short term bills and expenses. Both the current and quick ratios are showing an upward trend compared to 2001 and 2002. The current assets decreased by $ 20,264 to $ 1,531,181 and the current liabilities also decreased considerably by $255,402 to $616,000, a 29.3% decline, thus making the current ratio jump to a 2.5. The biggest decline was seen is accounts payable which decreased by $170,500 to $230,000, a decline of 42.6 %.