Sample Co. did invest $300 million in expenditures for land, buildings, machinery, and equipment in 2001, but that does not account for the significant increase in debt. ... Stock, Price to earning (P/E) ratio is ratio used to evaluate the cost of a company's stock price. ... Another stock evaluation ratio is dividend payout (dividends per share/earnings per share). ... For publicly traded companies, stock ratios provide investors a tool to evaluate a company's dividend payout and growth in value of the stock. ... assessing a company, profitably is valued by investors. ...

• Word Count: 1154
• Approx Pages: 5
• Grade Level: High School

In addition, under company's Management Incentive Plan, 15% of profits were set aside each year for stock awards to supervisors and managers. On top of having awarded, the employees were encouraged to hold the stock as long as they stayed with the company. ... DuPont Analysis: Excellent 2000 UPS/FEDEX Operating Profit Margin 0.1596 0.0667 Total Asset Turnover 1.4499 1.5304 Equity Multiplier 2.1092 2.4930 Return on Equity- 5 factor Dupont 0.2871 0.1438 As shown in the chart above, UPS's profitability and ROE to investors is superior compared to FEDEX. ... Market-implied: Excellent 2...

• Word Count: 968
• Approx Pages: 4
• Grade Level: High School

Common Stock Marriott's common stock price grew constantly in the ten-year period 1978-1987, from $2.43 per share at the end of 1978 to $30 at the end of 1987 (see exhibit 2) at an average rate of 35% per year. Using the Myron Gordon's Growth Model for the ten-year period 1978-1987, Marriott's expected return of common stock ranges 22% - 23% annual, while the cost of common stock for the company ranges 12% - 18% (see exhibit 3 for calculations). ... It is observed that the company's capital structure is composed by a 60% long-term debt, 40% stock in 1987. ... As discuss...

• Word Count: 1180
• Approx Pages: 5
• Grade Level: Undergraduate

Debt ratio measures how reliant the business is on external funds to finance the assets of the business where as returns on owner's investment measures how efficiently the business uses the owners invested capital to earn a profit. ... Likewise stock turnover as also increased, stock turnover measures the number of days to convert stock to sales. The reason for this might be that the business is holding more stock. ... Stock turnover seems be in increasing each year, to improve this the business should be rotating stock mix regularly and holding less stock on hand as they seem to be purch...

• Word Count: 1212
• Approx Pages: 5

Therefore, it might be one of the considerations for the investor to make a decision for whether investing the company. ... This measure allows investor to judge how efficient management of the company at using its asset in order to generated profit. ... However, there is a defect of ROE which it may be misleading the investor as it will ignore the influence of debt. ... It is always recommended an investor to calculate the debt ratio as well as the debt-to-equity ratio in order to analysis the level of risky of a company before investing. ... Meanwhile, the investor also should know about the...

• Word Count: 4399
• Approx Pages: 18
• Grade Level: High School

Their stores, which originally were set as an attachment to Treasure Island stores, carried a stock of around 25,000 products. ... Their stock is publicly traded at NYSE, listed under the symbol "HD". ... As a publicly held company since 1961, their stock is listed on the New York Stock Exchange (NYSE) under the symbol LOW. ... After completion of the analysis we expect to be able to give a recommendation regarding the companies' financial conditions, such as one given to current and potential investors. ... Both Home Depot and Lowe's offer a stock compensation plan f...

• Word Count: 2783
• Approx Pages: 11
• Grade Level: High School

With their initial offering of stock, they were able to generate $66 million in cash with another $108 million generated by another sale in 2001. The company's cash balance, which was increasing because of these stock sales, fell to $106.3 million at the end of 2002. ... Purchases of Temic, Transilica, and SPaSE with stock in 2000 and 2001 resulted in Intangible Assets and Goodwill that had ending balances in 2001 of $64.8 million and $50 million respectively. ... Microtune's main source of cash was financing activities'mainly the stock sales in 2000 and 2001, and it's main...

• Word Count: 3312
• Approx Pages: 13
• Grade Level: High School

The net benefit that shareholders' are receiving from investing their capital in the financial firm can be estimated by ROE. Usually, investors will compare and check the trend of ROE of different companies to make sure investment are done efficiently. ... Earnings per Share (EPS) Earnings per share (EPS) of the company indicates the portion of a company's earnings spread out to each outstanding share of common stock. ...

• Word Count: 1132
• Approx Pages: 5
• Grade Level: High School

 Case #68 Financial Analysis and Forecasting – Sweet Dreams Incorporated Summary of Case Sweet Dreams Incorporated (SDI) is mattresses and box springs manufacturer in southeastern part of the US. SDI's financial problems began with the recession of the early 1990's. In 1994, under pressure ...

• Word Count: 2577
• Approx Pages: 10

Oracle have a very high Price per Earnings ratio giving an indication that investors have trust in the company in regards to both the expected growth rate as well as the risk attached in regards to the managers abilities to sustain the good performance. ... The 1990 announcements had however hurt the company and the stock price fell drastically although the company is actually still performing very well. ...

• Word Count: 2503
• Approx Pages: 10
• Grade Level: High School

Executive Summary The Microsoft Corporation was founded by partners Bill Gates and Paul Allen with the vision of producing cutting edge software. Beginning with programming challenges in the 1970s, Bill Gates and his partner Paul Allen started a company with a dream to produce software on the la...

• Word Count: 4638
• Approx Pages: 19
• Grade Level: High School

Cannondale Corporation Case Analysis Strategic Profile Cannondale is a product differentiator due to their expertise and innovation in aluminum composite material design and fabrication. Cannondale is based on a vertical integration business strategy, whereas most of its competitors utilize ma...

• Word Count: 3584
• Approx Pages: 14
• Grade Level: Undergraduate