Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Concepts of operations management
Factors influencing operations management
Concepts of operations management
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Concepts of operations management
In today’s economy, cash is often considered to be king. This rings true for consumers and companies alike. The flows of a company’s cash are summarized on a company’s statement of cash flows (Gibson, 2011). The cash flow statement provides information regarding the effectiveness of company management in operating the business, how the company’s money is derived, and the way funds are being spent (Megan, Hategan, Caciuc, & Cotlet, 2009). A company’s management uses the statement of cash flows to assist with budgeting as it can predict cash flows in the future (Megan et al., 2009). Additionally, investors use it to assess the financial health of a company (Gibson, 2011; Megan et al., 2009).
Technology companies have experienced significant growth in the new millennium as the demand for access to immediate information has increased and the use of the internet has become mainstream. This paper will discuss Google Inc. (Google), its cash flows, its status as a growth firm, and supplemental information disclosed in its statements of cash flows. Furthermore, it will discuss the company’s public offering of stock in 2006 and why this was likely to be warranted.
Google is an internet technology company motivated to advance the means by which people are afforded access to information (Google, 2014). It has become a top internet entity and is one of the most recognized brands in the world (Google, 2014). It generates its revenues through targeted advertising, mobile products, consumer content, mobile operating system – Android, and various products (Google, 2014). The company is headquartered in California where it was first incorporated in 1998 (Google, 2014). It completed an initial public offering (IPO) of company stock...
... middle of paper ...
...Press release]. Retrieved from http://investor.google.com/releases/2006/0331.html
Google Inc. (2005). Google Inc. prices public offering of class A common stock [Press release]. Retrieved from http://investor.google.com/releases/2005/0914.html
Google Inc. (2014). Google Inc.: Form 10-K. Retrieved from http://www.sec.gov/Archives/edgar /data/1288776/000128877614000020/goog2013123110-k.htm
Ohlson, J. A., & Aier, J. K. (2009). On the analysis of firms' cash flows. Contemporary Accounting Research, 26(4), 1091-1114. Retrieved from http://www.caaa.ca
Naipaul, T. (2010). IPOS - if, when, why and how: Is there an increasing demand for IPOS? ISM Journal Of International Business, 1(1), 1. Retrieved from http://eds.b.ebscohost.com .proxy1.ncu.edu/eds/detail?vid=2&sid=93f7d59c-9e98-4ad4-82e4-469c5345afc6 %40sessionmgr111&hid=106&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=edb&AN=64921845
Financial statement analysis: theory, application and interpretation / Leopold A Bernstein and John J. Wild 6th edition Mc Graw Hill 1998
Although most IPOs are underpriced, the level of underpricing varies across IPOs with different issue characteristics, allocation mechanisms, underwriter reputation, and general financial market conditions. For example, the level of underpricing is reduced for larger IPOs, those underwritten by prestigious investment banks, firms with a longer operating history or more experienced insiders on the board, and those which intend to use the proceeds to repay debt. On the other hand, technology firms, firms backed by venture capital, firms with negative earnings prior to the IPO, or firms that went public during a bull market experience greater underpricing.
Cash flow throughout the company is broken up into cash generated by operating activities, financing activities, and investing activities. A company’s operating activities are typically what generates more cash and that stays true for J.B. Hunt. J.B. Hunt generated $873 million in 2015, a $226 million increase from the $647 million amount earned in 2014 (10-k, 22). This large increase occurred due to a few occurrences over the year. Over the year, J.B. Hunt had an increase in their earnings and they also collected much of their trade and income tax receivables (10-k, 22). Due to these primary reasons, J.B. Hunt generated more cash from operating activities during 2015. Compared to the amount of cash generated by the operating activities of
“Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it 's tough to develop new products, make acquisitions, pay dividends and reduce debt. Some believe that Wall Street focuses myopically on earnings while ignoring the
...as not only been reliable when it arises to offering a product of the highest and excellence, nonetheless is also continually developing, adjusting, but more meaningfully revolutionizing the industry. Also, what creates Google’s invention so matchless in assessment to its challengers is the attention that it offers to consumer requirements in order to offer a consistent and difficultly substituted the product rather than concentrating on exploiting its profit with each given chance which may cooperation the quality of its search consequence its product. Having examined the company’s internal and external environment it is obvious that Google earnings care and attentions even to the smallest detail to guarantee that it will be the leading company between many other online search engines and has been able to create loyal customers that are continually growing.
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
Organizations that have high free cash flow, creditors are willing to invest in these companies since these companies have powerful tools for debt repayment and they clearly have greater financial flexibility. On the other hand, cash enables managers to develop growth opportunities and development programs that will lead to an increase in company 's value. The free cash flow theory was first introduced by Jensen (1986), he stated that “Free cash flow as cash flow left after the firm has invested in all available positive NPV projects”.
Google was founded by two University of Stanford graduate students Larry Page and Sergey Brin. Their main objective of founding the company was to be able to retrieve specific data from massive amounts of information. The two developed a proprietary technology that would become the ultimate search engine. Initially the pair worked out of their dorm room, then a garage, and once they had quickly outgrown these "facilities" they had moved on to a much larger facility where they reside to this day. It seemed to be a matter of time before they had conquered the continental United States, and had begun to eye the lands across the pond.
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating platforms and systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenues from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries. The company assimilates various features in its search service and gives dedicated search services to aid users modify their search. Google also gives product-listing advertisements, which comprise of product information, like price, merchant information and product image without needing ad text or extra keywords.
Google’s mission statement is “to organize the world’s information and make it universally accessible and useful.” From the beginning, the company has focused on developing its proprietary algorithms to maximize effectiveness. Google continues to focus on ensuring that people access the information they need.
Google is a multi-billionaire company that was founded by Larry Paige and Sergey Brinn in September 1998. Google housed more than 40,000 employees and it is now still increasing. In 2014, the company has 53,600 employees. There are several products created by Google, some of the well-known are Google Search, Google Scholar and Google App.
Schroeder, Richard G., Myrtle Clark, and Jack M. Cathey. Financial Accounting Theory and Analysis: Text and Cases. 10th ed. Hoboken, NJ: John Wiley & Sons, 2009. 97. Print.
The management of cash is essential to the survival of any organization. Managing an organization’s financial operation requires knowledge of the economy and ways to maximize revenue. For any organization to operate on a daily basis adequate cash flow is required. Without cash management the organization will be unable to function because there is no cash readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle of the company’s operations going.
Political, economic, and technological are three factors of the external environment that Google must identify with doing an external analysis. Political factor can profit Googles growth through different markets. Chinese’s and US government placed an obstacle for any growth that Google had in these markets. According to Google 2009, “They viewed Google as a monopoly and request authority to monitor its activities. The pressure of the government provides additional problems with copyright and privacy issues. As the technology expands, it offers more problems for Google. “New...
Managing an organization’s financial operation requires a good understanding of the economy and ways to maximize revenue. For an organization to operate on a daily basis, adequate cash flow is required. Poor cash management within an organization might make it hard for the organization to function because there may be shortage of cash in case of inconsistences in the market. In most companies, management is interested in the company 's cash inflows and outflows because these determines the availability of cash necessary to pay its financial obligations. Management also uses this information to determine problems with company’s liquidity, a project’s rate of return or value and the timeliness of cash flows into and out of projects (used as inputs