Compuware Financial Analysis

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Introduction

This report provides a financial statement analysis for Compuware Incorporated. The scope of the report is an analysis of Compuware business operations and a financial statement analysis for fiscal years 2009-2011. Compuware’s principal activity is to develop, market and support system software products designed to improve the performance of information technology (IT) organizations. A fundamental analysis will be used which will focus on the present and future growth of Compuware Corporation (CPWR) which will include an evaluation of financial data such as earnings, growth, price-to-earnings ratio along with non-financial data including quality of management, business concept, competition, research development and a estimate of future prospects. As with most analysis the goal is to derive a valuation of the company by forecasting future earnings and profit.

The integrated technology industry has experienced unprecedented growth over the past decade. The Internet has become a common part of infrastructure, and a range of new players continue to entered the market, bringing new products and a surge in market valuations. But the industry’s downturn over the last several years has left companies to cope with overcapacity, reduced cash flow, falling share prices, and reduced customer spending. These events forced many companies into chapter 11 and increased consolidation in multiple segments. Companies continued to focus on cost and operational improvements, rather than growth, to drive earnings. Gartner predicts that as the global economy continues to recover from the impact of market downturn and recession, business will be demanding greater visibility of the linkage between IT investments and business re...

... middle of paper ...

...& Morse, W., (2010). Financial and managerial accounting for MBAs, 2nd Edition. Cambridge Business Publishers, LLC.

CNBC.com, (2011). Retrieved June 19, 2011 from http://data.cnbc.com/quotes/CPWR/tab/3

Compuware Corporation. (2011). Retrieved May 9, 2011 from http://www.compuware.com/

Fidelity Investments (2011). Retrieved June 19, 2011 from http://eresearch.fidelity.com/eresearch/goto/evaluate/snapshot.jhtml?symbols=CPWR

Gartner.com, (2011). Predicts 2011: IT opens up to new demands and new outcomes. Retrieved June 19, 2011 from http://www.gartner.com/

Morning Star Equity Research, (2011). Retrieved June 20, 2011 from http://www.nasdaq.com/MorningStarProfileReports/CPWR_USA.pdf

Pegstocks, (2008). Retrieved June 22, 2011 from http://www.pegstocks.net/PEG_Ratio.aspx

Reuters.com, (2011). Retrieved June 19, 2011 from http://www.reuters.com/finance/stocks/CPWR

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