Final Business Report

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Since you just did the last part I am offering you first bid

This week you will compile all of the information from the course project and submit a business report. The report will include information about the two firms within the same industry that you have been analyzing throughout the course.

Required

Prepare a business report that summarizes the information researched on your two firms. The report should include the following:

  • Name and background information on each of the firms.
  • Overview of the financial statement and ratio analysis performed for each firm.
  • Detail related to the trend of the stock price performance for each firm.
  • Indication as to which firm you feel is the most financially stable, supporting your position with your research and concepts from this course.

Your assignment should be a minimum of 5 written pages and utilize APA formatting. In-text citations and a reference page should also be included.

JFiler_CompanySelectionandStockWatch_072714.xlsx

JFiler_Ratio_Analysis_083114 (1).docx

Module 07_Ratio Analysis Problem.xlsx

20140916164508stock_watch_list.docx what you just completed

JFiler_InvestmentsInterestRatesRisk_081714.docx



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Company Selection and Stock Watch Source: Yahoo stocks application for iphone No. Date Stock Name Stock Symbol Current Price Exchange Traded On 1 7/27/2014 Apple AAPL $97,67 NASDAQ 2 7/27/2014 Google GOOG $589,02 NASDAQ 3 7/27/2014 Yahoo YHOO $36,12 NASDAQ 4 7/27/2014 AT&T T $35,54 NYSE 5 7/27/2014 GlaxoSmithKline GSK $48,60 NYSE Note: It was unclear if the assignment wanted purely numerical/financial info for financial facts or if news in the media also co Media news will likely sway investors, so it can be considred creadible info to be used to make predictions on where the Next to financial facts, I included another colum labeled, strictly financial facts that includes info like p/e or yield, etc. Financial Facts BOSE sues apple subsidiary Beats. This may likely lower investor confidence. Rumors that apple will come out with an iwatch may raise investor confidence. Reports surface that ipads are losing sales, may lower investor confidence. Google attempts to map human body, may increase investor confidence. Google buys Twitch, may lead to increase in investors. Google triples first half deal spending, may increase investor confidence. Yahoo Mobile Search ads grow, may increase investor confidence. New "Yahoo Ending" is a one-stop afterlife shop. May increase investor support. Yahoo buys startup Flurry. May increase investor support. Amazon Fire available at AT&T. May raise investor confidence. Ranked a top 10 stock by Bloomberg. May raise investor confidence. Weak Q2 earnings, results are worse than predicted. May lead to investor loss of confidence. WSJ reports GSK paid bribes in Syria as well. This may lower investor confidence. FDA approves Flonase Allergy Relief for OTC use in the USA. This may raise investor confidence. GSK seeks approval for worlds first malaria vaccine. This may increase investor confidence. cial facts or if news in the media also could work. used to make predictions on where the stock will go. hat includes info like p/e or yield, etc. Purely Financial Fact: P/E ratio is 16.39 MKT CAP is 588.9B 52W Low: 62.89, High: 97.88 P/E ratio is 30.53 MKT CAP is 398.1 B 52W Low:502.8,High:604.83 P/E ratio is 31.14 MKT CAP: 36.65 B 52W Low: 26.75,High:41.72 P/E ratio is 10.44 MKT CAP: 184.9 B 52W low:31.74,High:36.86 P/E ratio is 14.7 MKT CAP: 116.8 B 52W Low:48.23, High:56.73 Financial Analysis of Apple and Wal-Mart Liquidity Ratios Liquidity Ratios Current Ratio Apple Quick Ratios 1.68 1.64 0.88 0.24 WalMart From the above table we can see that Apple Incorporation is financially very strong and a much better financial position than the Wal-Mart Stores Inc. and the company is safer for investment as there are less chances of the company being defaulted or insolvent as the company has the back up or finances to pay its debts. Activity Ratios Activity Ratios Inventory Receivables Days Sales Fixed Asset Total Asset Turnover Turnover Outstanding Turnover Turnover 62 11.8 2.12 1.3 0.8 194 7.84 1.88 3.65 2.56 As we can see from the above table of calculated ratios, the Apple Incorporation is performing much better than the Wal-Mart as all the above ratios of the Apple Inc. are much better than those of Wal-Mart. Profitability Ratios Profitability Ratios Gross Profit Operating Profit Net Profit Return on Return on Margin Margin Margin Assets Equity Apple 38% 29% 22% 32% 30% 24.8% 5.6% 3.3% 7.8% 20.8% WalMart The profitability of the Apple Inc. is also much better than that of Wal-Mat as we can see all the respective ratios of the of the Apple Inc. are better than those of Wal-Mart. So this implies that the Apple Inc. has better profitability. The net profit margin of Apple Inc. is 22% which is much higher than Wal-Mart which is 3.3%. Leverage Ratios Leverage Ratios Debt Ratio Apple 102.5 WalMart 75.5 As we can see from the above table the leverage ratios of the Apple Inc. is higher than that of Wal-Mart Inc. which indicates that the Apple is applying its financial leverage to a good effect and is doing better than Wal-Mart Coverage Ratios Coverage Ratios Times-InterestEarned 614.58 11.62 Conclusions: From the above analysis we can conclude that the Apple Inc. has much better position than that of the Wal-Mart as it is performing much better in all areas and all the financial ratios of the Apple Inc. are better. So we will recommend that the investment in the stock of the Apple Inc. is better than Wal-Mart. References: 1. Wagner, Wieland (May 28, 2010). "iPad Factory in the Firing Line: Worker Suicides Have Electronics Maker Uneasy in China". Der Spiegel. Retrieved August 27, 2014 2. Buchanan, Matt (March 5, 2010). "Official: iPad Launching Here April 3, Pre-Orders March 12". Gizmodo. Gawker Media. Retrieved March 4, 2010. 3. "iPad Available in US on April 3" (Press release). Apple. March 5, 2010. Retrieved August 27, 2014. 4. "iPad Wi-Fi + 3G Models Available in US on April 30" (Press release). Apple. April 20, 2010. Retrieved August 27, 2014 5. Mark Rogowsky (June 2, 2014). "WWDC 2014: Live! News And Much More From Apple's Keynote". Forbes. Retrieved June 3, 2014. 6. "iPad – Technical specifications and accessories for iPad". Apple Inc. January 27, 2010. Retrieved August 27, 2014 Financial Analysis of Apple and Wal-Mart Liquidity Ratios Liquidity Ratios Current Ratio Apple Quick Ratios 1.68 1.64 0.88 0.24 WalMart From the above table we can see that Apple Incorporation is financially very strong and a much better financial position than the Wal-Mart Stores Inc. and the company is safer for investment as there are less chances of the company being defaulted or insolvent as the company has the back up or finances to pay its debts. Activity Ratios Activity Ratios Inventory Receivables Days Sales Fixed Asset Total Asset Turnover Turnover Outstanding Turnover Turnover 62 11.8 2.12 1.3 0.8 194 7.84 1.88 3.65 2.56 As we can see from the above table of calculated ratios, the Apple Incorporation is performing much better than the Wal-Mart as all the above ratios of the Apple Inc. are much better than those of Wal-Mart. Profitability Ratios Profitability Ratios Gross Profit Operating Profit Net Profit Return on Return on Margin Margin Margin Assets Equity Apple 38% 29% 22% 32% 30% 24.8% 5.6% 3.3% 7.8% 20.8% WalMart The profitability of the Apple Inc. is also much better than that of Wal-Mat as we can see all the respective ratios of the of the Apple Inc. are better than those of Wal-Mart. So this implies that the Apple Inc. has better profitability. The net profit margin of Apple Inc. is 22% which is much higher than Wal-Mart which is 3.3%. Leverage Ratios Leverage Ratios Debt Ratio Apple 102.5 WalMart 75.5 As we can see from the above table the leverage ratios of the Apple Inc. is higher than that of Wal-Mart Inc. which indicates that the Apple is applying its financial leverage to a good effect and is doing better than Wal-Mart Coverage Ratios Coverage Ratios Times-InterestEarned 614.58 11.62 Conclusions: From the above analysis we can conclude that the Apple Inc. has much better position than that of the Wal-Mart as it is performing much better in all areas and all the financial ratios of the Apple Inc. are better. So we will recommend that the investment in the stock of the Apple Inc. is better than Wal-Mart. References: 1. Wagner, Wieland (May 28, 2010). "iPad Factory in the Firing Line: Worker Suicides Have Electronics Maker Uneasy in China". Der Spiegel. Retrieved August 27, 2014 2. Buchanan, Matt (March 5, 2010). "Official: iPad Launching Here April 3, Pre-Orders March 12". Gizmodo. Gawker Media. Retrieved March 4, 2010. 3. "iPad Available in US on April 3" (Press release). Apple. March 5, 2010. Retrieved August 27, 2014. 4. "iPad Wi-Fi + 3G Models Available in US on April 30" (Press release). Apple. April 20, 2010. Retrieved August 27, 2014 5. Mark Rogowsky (June 2, 2014). "WWDC 2014: Live! News And Much More From Apple's Keynote". Forbes. Retrieved June 3, 2014. 6. "iPad – Technical specifications and accessories for iPad". Apple Inc. January 27, 2010. Retrieved August 27, 2014 Ratio Analysis Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventor After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation. Values presented on the financial statements are in millions. Blue Bill Corporation Balance Sheet December 31, 2011 Assets Current Assets Cash and cash equivalents Receivables (net of allowance) Inventories Other current assets Total current assets Property, plan and equipment Land Buildings Equipment Less accumulated depreciation Total property, plant and equipment Other noncurrent assets Total assets $ 483.2 1,045.1 1,249.4 273.5 3,051.2 77.1 842.4 3,546.0 2,373.7 2,091.8 4,932.6 $ 10,075.6 Ratio analysis Liquidity ratios: Current ratio Quick ratio Activity ratios: Inventory turnover Receivables turnover Days sales outstanding Fixed asset turnover Total asset turnover Profitability ratios: Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity Leverage ratios: Debt / Net worth Debt ratio Coverage ratios: Times-interest-earned Analysis of Blue Bill Corporation's financial health based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. erall financial health of Blue Bill Corporation. n millions. ue Bill Corporation Balance Sheet ecember 31, 2011 Liabilities and Shareholders' Equity Current liabilities Short-term debt Long-term debt due within a year Accounts payable Other accrued liabilities Total current liabilities Long-term liabilities Long-term debt Deferred taxes Other long-term liabilities Total long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Blue Bill Corporation Income Statement 2011 $ 43.4 151.6 1,007.7 972.7 2,175.4 4,559.4 665.3 784.2 6,008.9 1,891.3 $ 10,075.6 Sales Cost of products sold Gross Profit Selling and administrative expense Operating income Other income Earnings before interest and taxes Interest expense Taxes Net income poration atement 1 $ 10,495.0 6,700.5 3,794.5 2,350.9 1,443.6 (18.3) 1,425.3 295.2 247.8 $ 882.3 1 Running head: Watch list performing Watch list performing Jazmin Filer Rasmussen College Author Note This research paper is being submitted on August 17, 2014, for Jim Boxma's B230/FIN1000 Section 02 Principle of Finance Course. 2 Running head: Watch list performing Watch list performing: In estimating, you are looking to benefit from the short or midterm variances of business sector estimation of stocks. This time allotment can extend from short of what a day to a few months. On a few events you may have the capacity to consider a period compass of one to two years as speculative. Where as in contributing you are taking a gander at the business in general and deciding an estimation of that business. Through the theory model, whether a business is exaggerated is of little concern. Track the Performance of Each Trading Strategy The main reason you ought to keep your theory cash separate from your contributing record is on account of you'd need to track the execution of every philosophy. Keeping both sorts of cash in the same record absolutely on account of exchanging commissions is not a decent choice. You'll wind up paying more in speculation and hypothesizing misfortunes than you will with exchanging commissions. The second reason differentiating theory cash from your contributing cash is a clever choice is whether you begin exchanging the same stocks in shifting timelines you could forget about what stocks you are utilizing which method. The last purpose behind differentiating your contributing cash and your theory cash is if you have to withdraw cash out of a record, you'll know to force from the hypothesis cash first versus the contributing 3 Running head: Watch list performing Stock's performance: stock that seems to oppose standard way of thinking about how a stock is, or should be, esteemed. Principal investors, in the same way as yours positively, perceive and respect the vitality of the earnings and value relationship. This leads a couple of words about business productivity. Academics supportive of current fund hypothesis contend for an effective business sector. Investigator offers the accompanying meaning of the Efficient Market Hypothesis An investment hypothesis that states it is impossible to "beat the business" because stock business proficiency causes existing share prices to always join and reflect all applicable data. As per the EMH, stocks always exchange at their reasonable esteem on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks at swelled costs. As such, it should be impossible to beat the general market through master stock selection or business sector timing, and that the main way an investor can possibly get higher returns is by purchasing riskier investments. the productivity of markets is somewhat not the same as the views declared today in so-called current money hypothesis. Instead of asserting that the business is all-knowing and/or consolidating and reflecting all important data, I fight instead that it is constantly seeking productivity, yet not necessarily productively valuing stocks sometime or another Stock or convertible investments: Basic stock and favored stock both speak to some level of responsibility for organization. Holding shares of regular stock provides for you the opportunity to vote in the decision of the top 4 Running head: Watch list performing managerial staff. This is typically equal to one vote for every impart that you possess. Owning favored stock normally ensures the installment of profits yet does not accompany voting rights. Possession in either kind of stock qualifies you for a bit of the organization's benefit. One way benefit is circulated to the shareholders is through profits, which are regularly paid in real money from the organization's income. Profits are normally paid on a quarterly premise. Basic stockholders never know the estimation of their profits ahead of time, while favored stockholders get profits at an altered rate. While the profits on favored stocks have a tendency to be higher than those on basic stock, they won't acknowledge with organization development. Investors can consider favored [stocks] as some place between a stock and a corporate security, as they exchange on a trade the way stocks do, yet the profits are by and large high, in the same way as those from long-development securities," says Mitch Schlesinger, overseeing director of the Bethesda, Md.-based FBB Capital Partners by organization. Acquiring regular shares of an entrenched organization is less unsafe than attempting your hand with penny stocks. In any case, when seen over long speculation holding periods, basic stocks have historically offered higher returns than favored stocks or bonds. favored stocks are more unpredictable than their security cousins, and in some cases as unstable as normal stocks in light of the fact that exchanging liquidity in the favored sector can become scarce in times of compelling business sector stress. Amid times of monetary inconvenience, an organization won't default in the event that it suspends favored profits, as is the situation with missed bond installments. In the event that the 5 Running head: Watch list performing shares are not total, the organization does not have the commitment to pay missed profits. Favored stock may be callable, which implies the organization has the right to buy the shares from the shareholder at a certain cost whenever. On the other hand, as specified above, profits on favored stock have a tendency to be higher than profits on regular stock. On account of liquidation, favored stock holders rank above regular stock managers yet beneath ordinary bondholders. This implies that if the organization goes bankrupt, regular stockholders just get paid if there is something remaining after the creditors, bondholders and favored stockholders get their shares. How the money adds up is that normal shareholders seldom get anything in chapter 11 cases, while favored stockholders have a superior shot of getting in any event some cash back. Corporations can offer two classes of stock: normal and favored. Favored and normal stocks contrast in their budgetary terms and voting/influence rights in the organization. An offer (additionally alluded to as value shares) of stock speaks to an offer of proprietorship in a corporation. As an unit of possession, basic stock ordinarily conveys voting rights that could be practiced in corporate choices. Favored stock (likewise called inclination imparts or favored shares) varies from basic stock in that it normally does not convey voting rights however is legitimately qualified for get a certain level of profit installments before any profits might be issued to different shareholders. 6 Running head: Watch list performing References Barsky, Robert B. and J. Bradford DeLong. “Bull and Bear Markets in the Twentieth Century,” Journal of Economic History 50, no. 2 (1990): 265-281. Bierman, Harold, Jr. The Great Myths of 1929 and the Lessons to be Learned. Westport, CT: Greenwood Press, 1991. Bierman, Harold, Jr. The Causes of the 1929 Stock Market Crash. Westport, CT, Greenwood Press, 1998. Bierman, Harold, Jr. “The Reasons Stock Crashed in 1929.” Journal of Investing (1999): 11-18. Bierman, Harold, Jr. “Bad Market Days,” World Economics (2001) 177-191. Commercial and Financial Chronicle, 1929 issues. Committee on Banking and Currency. Hearings on Performance of the National and Federal Reserve Banking System. Washington, 1931. DeLong, J. Bradford and Andrei Schleifer, “The Stock Market Bubble of 1929: Evidence from Closed-end Mutual Funds.” Journal of Economic History 51, no. 3 (1991): 675-700. INVESTMENTS, INTEREST RATES, AND RISK 1 Investments, Interest Rates, and Risk: In Principles of Finance Jazmin Filer Rasmussen College Author Note This research paper is being submitted on August 17, 2014, for Jim Boxma's B230/FIN1000 Section 02 Principle of Finance Course. INVESTMENTS, INTEREST RATES, AND RISK 2 Which of the five investments do you think are most highly affected by the level of interest rates in the economy? Why? It is seen that shares values of APPLE Inco has seen as an upward movement during the last few days, because its shares bargaining in market is higher than other companies and it is attracting many investors around the globe to invest in its shares. Because of the stable economic conditions in USA market, the stock price of Apple Inco has been viewed as a reliable investment and traders are trading mostly in that stock. If we look at the various factors that tend to increase the level of interest on the stock values, these are said to be the demands of shares in market which highly appeals to investors to buy more shares of Apple Inco. The reason for increasing the interest rate on the share is the more stable economic condition and strong reliance of investors in the market. When the demand for shares in the market is higher, then interest rate also increase as investors usually want huge and satisfactory return on their investment. Second reason for increasing the interest rate is the higher monopoly of companies in the market. As Apple Inco is highly penetrated company in the cellular product, people and consumers strongly believe that purchasing products of Apple Inco would give them more benefits, so keeping the views of the consumers, with every passing day, Apple Inco tends to increase the interest rate on the share which provides higher profit and return on investment to its shareholders and investors. Third reason is that during the recession period, monopolistic companies prefer to facilitate its consumers by giving the numerous options which help companies its increase their clienteles and after gaining huge consumers response. Companies increase the interest rate for giving more return on their investment on daily basis. This option is undertaken on e condition when investors believe that their current investment will yield more positive outcome and return. Order of investment from most risky to least Risky: INVESTMENTS, INTEREST RATES, AND RISK • Nasdaq Apple • NYSE-WMT • ALL • AAMRQ • AAMRQ 3 These investment order has been done on the basis of the consumer’s response and the overall return taken by consumers on the investment. The highest risky investments is in the purchase of the share of Apple Inco , though people highly believe in Apple Inco but some uncertain events can reduce the values of shares of Apple Inco down. The least risky is AAMRQ which gives no adequate profit and loss to investors then investors see very highly investment in AAMRQ as it gives equal loss and profit to it investors. What types of risk do you think affects each of the investments? The risk on each investment can vary but it is the market response to each investment. Thus overall, the uncertain economic conditions and low income of people can be a huge risk for each investment which can lower the values of investment in the market. Thus interest rates also vary depending the marketing condition as well. INVESTMENTS, INTEREST RATES, AND RISK 1 Investments, Interest Rates, and Risk: In Principles of Finance Jazmin Filer Rasmussen College Author Note This research paper is being submitted on August 17, 2014, for Jim Boxma's B230/FIN1000 Section 02 Principle of Finance Course. INVESTMENTS, INTEREST RATES, AND RISK 2 Which of the five investments do you think are most highly affected by the level of interest rates in the economy? Why? It is seen that shares values of APPLE Inco has seen as an upward movement during the last few days, because its shares bargaining in market is higher than other companies and it is attracting many investors around the globe to invest in its shares. Because of the stable economic conditions in USA market, the stock price of Apple Inco has been viewed as a reliable investment and traders are trading mostly in that stock. If we look at the various factors that tend to increase the level of interest on the stock values, these are said to be the demands of shares in market which highly appeals to investors to buy more shares of Apple Inco. The reason for increasing the interest rate on the share is the more stable economic condition and strong reliance of investors in the market. When the demand for shares in the market is higher, then interest rate also increase as investors usually want huge and satisfactory return on their investment. Second reason for increasing the interest rate is the higher monopoly of companies in the market. As Apple Inco is highly penetrated company in the cellular product, people and consumers strongly believe that purchasing products of Apple Inco would give them more benefits, so keeping the views of the consumers, with every passing day, Apple Inco tends to increase the interest rate on the share which provides higher profit and return on investment to its shareholders and investors. Third reason is that during the recession period, monopolistic companies prefer to facilitate its consumers by giving the numerous options which help companies its increase their clienteles and after gaining huge consumers response. Companies increase the interest rate for giving more return on their investment on daily basis. This option is undertaken on e condition when investors believe that their current investment will yield more positive outcome and return. Order of investment from most risky to least Risky: INVESTMENTS, INTEREST RATES, AND RISK • Nasdaq Apple • NYSE-WMT • ALL • AAMRQ • AAMRQ 3 These investment order has been done on the basis of the consumer’s response and the overall return taken by consumers on the investment. The highest risky investments is in the purchase of the share of Apple Inco , though people highly believe in Apple Inco but some uncertain events can reduce the values of shares of Apple Inco down. The least risky is AAMRQ which gives no adequate profit and loss to investors then investors see very highly investment in AAMRQ as it gives equal loss and profit to it investors. What types of risk do you think affects each of the investments? The risk on each investment can vary but it is the market response to each investment. Thus overall, the uncertain economic conditions and low income of people can be a huge risk for each investment which can lower the values of investment in the market. Thus interest rates also vary depending the marketing condition as well.
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