The amortization expense also increased by 25.73% in 2014 compared to 18.89% in 2013. The accounts receivable was 25.55% in 2014. The sales revenue had increased from $55,519million in 2013 to $66,001million in 2014. This increase in credit sales resulted in net account receivable of $875million in 2014 from $100million in 2013. In the current liabilities section of Google Inc., there were ups and down in the various accounts.
It has seen a slight decrease in structure of capital from 74.87% in 2014 to 72.72% in 2015, and long-term liability equal about almost triple of equity. Total liability make up about 83% of total asset and this percent exceeds the industry norm (60%). Furthermore, if the gearing ratio continues to increase means the risk of insolvency will be higher. Financial leverage ratio has dropped from 3.66:1 in 2014 to 3.98:1 in 2015, which leads to a lower inherent risk in a change in return on equity. While a lower financial leverage ratio reduces the return on equity.
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.
As another method to understand both companies’ performance is to look at the balance sheet, and each company’s cash and cash equivalents, inventory, accounts receivable, and property, plant, and equipment will be analyzed by using horizontal and vertical analysis. Firstly, Apple Inc. had an increase in cash and cash equivalents in the year 2013 compared to 2012. Its cash was increased by 32.69% in 2013 as compared to 2012. However, in the fiscal year 2014, it decreased by 2.91% as compared to its previous year. The major reason of this particular change is that Apple Inc. repurchased a large amount of common stocks and paid dividends.
From 2005-2014 Cabela’s AR turnover ratio has increased 154.89%, largely due to their expansion over the 10 year period. Cabela’s Days Sales Outstanding ratio has seen a large decrease over the 10 year period. From 2005-2014 their DSO ratio has decreased 60%, meaning that Cabela’s now collects revenue from its sales at a much faster rate. Cabela’s AR change to overall sales change ratio saw
It is calculated as: Total assets divide by total equity. As equity multiplier calculates leverage, the higher EM indicates that a bigger portion of asset financing is being used through debt. The smaller amount of equity multiplier is better, because it spends less money to fund an asset. As we can see on the tables, the EM of Citi Group was 12.161 times in 2009 and 11.706 times in 2015 respectively, it had decreased by 0.455 times due to bigger increase in total equity which was $154.17 billion dollars in 2009 and $157.33 billion dollars in 2010. In general, both Citi bank Group and Bank of America used less equity capital to funds their assets after financial crisis.
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.
Another ratio which is return on equity ratio also increased from 29.5% to 46.2% over the past four years. According to this result, the company has better control over its cost as the profit margin ratio increased and generates more profit from money that is invested by shareholders. The next analysis that should be considered is asset efficiency. The first ratio in asset efficiency is asset turnover ratio which increased from 1.00 in 2010 to 1.13 in 2011 and fall down into 1.04 in 2013. This result indicates the company was poor in using its asset to generate revenue.
For instance, the company’s refining and marketing margins helped the company to increase its earnings by a whopping $4.1 billion in 2015. This was however offset by volume and mix effect that led to increased maintenance costs and reduced its earnings by $200
Ratio Analysis In order to make inferences about a company’s financial condition, its operations, and its attractiveness as an investment we have analyzed financial ratios and compare ratios derived from SVU’s financial statements (see chart 1). Gross Profit Margin The gross profit margin ratio is used to show how much of each sales dollar is left after certain costs are covered (footnote). Looking at the table, Supervalu has increased its gross profit margin from 14.4% in 2015 to 14.7% in 2016 (in millions of dollars). This shows that net income for 2015 was 14.4 percent of sales and in 2016 increased to 14.7 percent of sales. Likewise, Walmart has increased its gross profit margin from 24.8% in 2014 to 25.1% in 2016 (in millions of dollars).