Individual financial case analyses 2

Anonymous
timer Asked: Jun 5th, 2018
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Question description

Students will compare and contrast the performance of two capital management firms: Berkshire-Hathaway and Cerberus Capital Management. The analysis should address the revenue drivers of each firm, their approach to risk, investment philosophy, and compare strengths and weaknesses of each firm’s business model. The analysis must be 2-3 pages. should a kinda look like the example for Snapchat that I have attached just with the required information for this analyses.

Running Head: SNAP INC 1 Snap Inc. Name Institution SNAP INC 2 Company Overview Snap Inc., a camera company, was founded in 2010 and believes that its reinvention of the camera gives the company a great opportunity to standardize people’s communication and life. The company was formed as a future freshman LLC, a limited company in California. The company changed its name to Toyopa group LLC back in the same year. In 2012, the company incorporated as Snapchat Inc., a Delaware cooperation and altered its name to Snap Inc. in the year 2016. The company’s headquarters are found at 63 Market Street in Venice, California (U.S Securities and Exchange Commission, 2018). The company helps folks communicate, learn more about the world, live in the moment, and have fun at the same time. Snapchat has had the ability to minimize the friction associated with content creation and sharing something that has helped the company become one of the most popular cameras globally. 187 million folks use Snapchat each day on average, making more than 3.5 million Snaps on a daily basis. Info Trends estimates that to be more compared to the average number of photos taken across all digital cameras, tablets, and phones combined on a daily basis in 2017 (U.S Securities and Exchange Commission, 2018). Snap Inc.’s products include Camera, Friends Page, Discover, Snap Map, Memories, and Spectacles. The company’s major competitors include Facebook (WhatsApp & Instagram), Apple, Twitter, and Google (YouTube). Snapchat has a wide product base, which makes to have a wider range of other competitors in radio, television, and traditional printing as well. The company has invested heavily in technology including product development, advertising technology, large-scale infrastructure, and Research & development (U.S Securities and Exchange Commission, 2018). SNAP INC 3 Common Income Statement The company has been experiencing a net loss that increased by $141,750 between 2015 and 2016, and by $2,930,423 between 2016 and 2017. Total operating expenses have had an upward trend between the three years increasing by 484,475 between years 2015 and 2016, and by $3,385,658 from 2016 to 2017. Common balance Sheet The balance sheet shows a significant increase in current assets between 2016 and 2017 ($1,186,809). There was also a slight major increase in current liabilities by 189,512 between 2016 and 2017. Stockholders’ equity increased by $1,698,774 between the two years. This information indicates that the company is not doing very well. Ratio Analysis There was a slight decline in current ratio between 2016 and 2017 of 1%; however, the current ratio is more than 1 indicating a healthy company. The current and quick ratio shows that the company has the ability to pay off debts when they become due. The financial Leverage Ratios indicate no cause of alarm considering that the long-term debt can be managed. The debt to equity ratio was 3.1% in 2016 and 2.8% in 2017. Profitability ratios indicate that the company is unable to generate profits. The company already faces net loses, which are increasing, hence unhealthy. Instead, the expenses, as well as other relevant costs, for running business are increasing hence the company is not making any profits. SNAP INC 4 Reference U.S Securities and Exchange Commission. (2018). Snap Inc. New York.

Tutor Answer

chemtai
School: Purdue University

please find the attached file. i look forward to working with you again. good bye

Running head: CAPITAL MANAGEMENT FIRMS

Capital Management Firms
Name
Instructor
Institution
Course
Date

1

CAPITAL MANAGEMENT FIRMS

2

Berkshire Hathaway capital management firms

Berkshire Hathaway has deemed a holding company presided by Warren Buffett with
headquarters at Omaha, Nebraska. The business has seen growth after Warren started sending
cash flows from the business and diverting them into other relatively profitable investments.
By the year 2017, Berkshire Hathaway had accrued capitalization of markets in the sum of $
488 billion rendering the company one of the most successful global public traded
companies. The subsidiaries created a form of insurance to make up the largest portion of the
Berkshire Hathaway (Berkshire Hathaway, n.d). The company Berkshire Hathaway manages
businesses of diverse natures which accrue revenues for the company.

Berkshire has a relatively long history as pertain...

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Anonymous
Totally impressed with results!! :-)

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