Stock Statistics
As a team we analyzed five company's referencing the
finance.yahoo.com website for data; the purpose of this assignment
was to review and provide Stock Statistics based off the information
provided on the stock market. Team D decided to use Amazon,
General Electric, Ford Motor, JP Morgan and Southwest Airlines as
companies that trade in the stock market. Below we have provided
detailed information about the risk, key statistic, market cap and
more.
Average Volume
The average volume is the quantity of units traded; this is used to
interrupt the volume of transactions that happen in a particular day
over a period of time. Over the last three months the average amount
of stock sold per day for Amazon.com Inc. was 5,167,372, General
Electric Company was 90,612,209, Ford Motor Co. was 46,986,337,
Morgan JP & Co. was 15,174,744 and finally Southwest Airlines
Co. was 4,795,598. To get these numbers they had to take the total
amount of stocks sold over the last 90 days.
Market Capitalization
The P/E ratio is related to the earnings and the price people are
paying to buy the earnings; it’s also used to compare the price of the
stock to its earnings. Though it is mostly used when comparing
stocks in the same industry, the lower the P/E the better. The P/E
ratio reflect what the market is currently willing to pay for future
cash. The price earnings ratios are Amazon.com Inc. 255.56,
General Electric Company not applicable, Ford Motor Co. 5.87,
Morgan JP & Co. 18.25 and Southwest Airlines 10.52.
Price-Earnings
The market capitalization is the value of the company; it's calculated
by multiplying the shares of the company by the issued value of the
stock. This provides what the market has priced for the company
and how cost of what it would take to purchase the company at the
current share value. Market cap determines how large or small a
company; the five companies we selected have market capitalization
in the amounts of Amazon.com Inc. 706.861B, General Electric
Company 124.261B, Ford Motor Co. 44.303B, Morgan JP & Co.
396.131B and Southwest Airlines 35.806B.
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What is the amount of its dividends paid, if any, and what is
the dividend yield (Div & Yield)?
Evaluate these firms' statistics. Click on "Key Statistics."
What are the firm's beta?
What are their return on assets (ROA) and return on equity
(ROE)? What are their short ratio?
Risk
In terms of risk with if you have a conservative investor
they would prefer the low risk stocks with the lowest stocks from
General Electric Company at 0.71, then Ford Motor stocks with
0.92, JP Morgan and Chase with 1.08, and Southwest Airlines with
1.22. Investors who want high risk-reward ratios would choose the
high beta stocks. The highest risk of stocks is Amazon at 1.71 beta.
Working for a company that can give their employees
bonuses that are equal to the appreciation of the company stock is
something you should consider when looking for employment. JP
Morgan and Chase returns an average of $22,567,000 billion dollars
to their common shares, Ford Motors returns an average of
$7,602,000 billion to their common shares, Southwest Airlines
returns an average of $3,488,000 billion to their common shares,
and Amazon returns an average of $3,033,000 billion to their
common shares. I would gladly work for any of those companies.
General Electric Company on the other hand is in the negative of
negative $6,222,000 billion to their shares. They would have a lot of
work to do in order to catch up to not consistently be negative and
not be able to offer bonuses to their employees.
Performance
The most profitable company relative to its total assets is
Southwest Airlines they had a yearly profit at the end of 2017 with
8.92% and they use their investments the best to generate earnings
growth by 36.96%. I would consider investing in their stocks for
2018. Their stocks however have a high short ratio so the stock price
will most likely continue its downward trend. There gross profit for
2017 was $14,740,000.
Amazon is the second most profitable with 2.39% return
on assets and 12.91% using their investments to generate earnings.
They also are on the higher side of tradable shares which means
their stock price will continue to do down. They had a high gross
profit for 2017 coming in with $65,932,000 profits.
Ford Motor was profitable 1.27% relative to their total
assets. They use their investments wisely to generate earnings by
23.73%. They have the best short ratio with 0 which means their
stock price should continue to rise and the value of their stocks will
be something traders will want to attain. They had a gross profit of
$16,340,000 for 2017.
JP Morgan and Chase was profitable 0.97% to their total
assets. They used a portion of their investments to generate earnings
at 9.59%. And their short ratio was 2.03 which is on the higher side
in which traders will expect the stock price to continue its
downward trend. Their gross profit for 2017 was $94,334,000.
General Electric Company was not profitable in 2017,
they were in the negative of their return on assets by -0.37% and
also in the negative -6.93% for how they use their investments to
generate earnings. Their short ratio was 1.15 which is more in the
middle of other companies with how many tradable shares they
have. Their gross profit for 2017 was $179,900,000 which is
extremely high so they need to manage how they use their profits
better throughout the company.
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