In 2004, the profit margin was 14.4 percent and in 2003 it was 13.3 percent. The profit margin for Coca Cola using the same ratio was at about 17 percent for 2005, down from the previous two years of about 18 percent. The average industry profit margin was at about 11.3 percent (Biz Miner 2005). This means that Pepsi Co was average, and maintain a solid profit. While Coca Cola's profit decreased ever so slightly, it was still higher than the industry average.
Therefore, by comparing Apple and Blackberry ratios over a span of three years we realize that Apple has been doing a better job in terms of ROE, meaning that Apple is more effective and efficient in its use of money from investments to generate profit. The return on invested capital (ROIC) measures how efficiently a company uses the capital (owned or borrowed) that has been invested in its operations. A high ROIC means that a company is getting a high return on invested capital. Not surprisingly, Apple has the higher ROIC, with a ROIC of 35% in 2012, when Blackberry was only making a return of 14%. In 2013, Blackberry’s ROIC dropped to 0$, which means that, for every 1$ invested in invested capital, their return is
Amazon had a lower ROE in year 2013 compared to year 2010, which illustrated that every dollar shareholders invested generated lower net income. Morever, in 2012, both ROA and ROE were negative. The reason why Amazon’s profit decreased over recent four years is because that its cost of goods as a percentage of revenue increased. Amazon expanded its digital market to Asia and Europe, which led to a increasing in shipping and packaging cost. Comparing Amazon wi... ... middle of paper ... ...old these elements constant, the estimate Amazon’s stock price should be $286.41 to $387.2.
The earnings per share for both the companies is following a zigzag trend due the change in net income for the respective years. In the years 2010 and 2011 the earning per share of IOCL has decreased in comparison to HPCL due to increase in number of shares from 119.47 to 242.7. The share capital of IOCL is quite large in comparison HPCL i.e. IOCL’s equity share capital is 2427.95(crore)and that of HPCL is of 339.1(crore) but the profit earned by the company is not much in contrast to each other so EPS of IOCL is in same range as of HPCL.
According to my figures, rate earned on stockholder’s equity was better for Hasbro in 2012 than it was 2013. Mattel had a rate of 27.4% in 2012 and a rate of 28.6% for 2013. For both years, Hasbro had a lower rate than Mattel. Meaning that Hasbro was more profitable for the stockholder’s in 2012 than it was in 2013. According to the 10-K for Hasbro, net earnings for the company were affected by restructuring charges and product development expenses (Edgar Online,
In this case, it seems that Apple Inc. does not have a lot of inventory and does not manage it well in time manner. In contrast, Hewlett-Packard Co. had a decrease of 4.29% in inventory for 2013, comparing to 2012. Furthermore, its inventory was increased by 6.10% in 2014 as compared to 2013. These changes were made mainly based on changes in demand. “Factors influencing these adjustments include changes in demand, technological changes, product life cycle and development plans, component cost trends, product pricing, physical deterioration and quality issues” (Hewlett-Packard, 51).
The higher NOPAT, was mainly a result of improved margins which lead to a higher ROI. The key to EVA is the spread between ROI and WACC. It is important to invest capital at a higher rate than the capital is obtained at. In theory, as long as there are enough projects that produce ROI > WACC and enough capital supplied, EVA can grow indefinitely. EVA ($MM) ($2,000) ($1,000) $0 $1,000 $2,000 1994 1995 1996 1997 1998 1999 2000 Year EVA Coca-Cola PepsiCo WE mentioned above that the (WACC) Weighted Average Cost of Capital is important.
In comparison to previous year the liquid assets against single dollar of current liabilities is reduced and in 2014 it is 0.9231 which indicates that now for paying off one dollar of liability, coca cola has less than 1 dollar to pay out its short term liabilities. i.e., its liquid assets have reduced from 2013. The quick ratio of coca cola and is competitor is almost the same. The PepsiCo has quick ratio of 0.968and coca cola has quick ratio of 0.923. It means that both PepsiCo and Coca cola have less than one dollar of liquid assets to pay of 1 dollar of its liabilities.
The financial information is also helpful in the company acquiring revenue in the future. PepsiCo, Inc., best known for its top selling cola, Pepsi, and the Coca-Cola Company, best known for its popular soda, Coke, has dominated the top spots in the beverage industry for decades in the domestic market and also in the international market. Both companies sell their products worldwide. They have strategically followed a business plan that has kept them on top and created a gap between their company and other c... ... middle of paper ... ...companies experienced in 2005 lower net profits than they did in the previous year of 2004, and they both also showed an increase in operating expenses, resulting in lower net profits. They both showed higher operating expenses in 2005 compared to 2004 and should modify or adjust their operations to help reduce expenses so that their profit margins will begin to increase.
Both risk-on and risk-off play The spirits industry has been a noteworthy alternative investment of late. Not only has it consistently outperformed stock market, but also has materially emulated the returns from safe-haven investments such as gold and treasury bonds during the financial crisis. While the value of gold rose 138.3% in the five-year period from 2007 to 2012, Brown-Forman posted a reasonable 75.05% gain in the same period. In comparison, the S&P 500 (^SPX) index fell 11.2%, while the iShares Barclays 20+ Years Treasury Bond ETF (TLT) gained only 36.14% in the 5-year period. Along with industry peers like Diageo (DEO), the alcoholic spirits industry fares considerable better than the broader markets during recessionary and other downturn periods.