...June 24, 2013 Everest University Introduction The premise of this paper is to assume that I have just graduated from the MBA program and have taken a job as a fund manager for a well-known investment banking house where I have been given $300 million fund to manage/invest. The type of fund I am managing is a pension/retirement fund of long-term perspective and tolerable of moderate risk for loss of capital, it has a required annual return of 9%. As such, in order to mitigate the investment risk, I am instructed to make 12 investments of $25 million dollars each. My first assignment is to preform an analysis on a company of my choice to determine if the fund I am managing should make the investment of $25 million in the stock of this company, and prepare a report. My analysis will be primarily based upon the company's most recent 3 years annual and quarterly SEC filings, and will be comprised of calculations of financial ratios for cash flows and profitability, as well as, forecast performance measures of earnings, analysts' reports and related articles. The decision to invest or not invest will be based upon and supported by this analysis. The company I have chosen for my analysis, IPG Photonics Corporation ,went public in 2006 and is listed on the NASDAQ represented by ticker symbol IPGP. IPG is currently headquartered in Oxford, Massachusetts, but was originally founded in Russia in 1990 by physicist Valentin P. Gapontsev, Ph. D., as a small optics company...
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...advertisement. Google not only provides services for the common user, but also designs specific products for corporate settings, such as non-profit organizations, government, businesses and schools. Most of its online products are free to use and are supported by text ads that are displayed within the interface. This begs the question of whether Google has a sustainable business model if in the future people begin to ignore internet-based advertisements. For my report, I used two different reports to financially analyze Google Incorporated, which were the 2012 10K form filed with the Securities and Exchange Commission and the Annual report which is posted on it’s website and sent to it’s investors. The 10K report is a document that contains a more detailed explanation of business activity. The 10K is generated annually and has the same financial statements as the annual report, but it is much more detailed and business oriented. Therefore, most of my analysis came from the 10K report. The main purpose of the 10K is to provide detailed...
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...Company Analysis and Comparison: JC Penney (JCP) and Target (TGT) Becky Kennedy FINC 350 A Professor Mason February 1, 2015 JC Penney and Target are a huge presence in the retail industry. Both companies specialize in the sale of merchandise and service to consumers through retail stores and e-commerce. Target and JC Penney are companies that are part of an industry known for its competitiveness and few barriers to entry. They compete with other local, national and regional retailers for resources such as customers, employees, locations, merchandise, and other aspects of the retail business. Both companies have stores at several locations throughout the United States, with both company’s operating results depending on their ability to predict and respond to changes in trends and customer preferences by providing consumers with quality merchandise at competitive prices. Both companies face the same kinds of risks. The answers are in the way they are managed. The retail industry is risky with Target and JC Penney both struggling with issues resulting in lost revenue. Risks faced by companies in the retail industry most likely include competition, marketing, branding, employee/customer retention, supply chain management, financial management, data management and much more. Target suffered from a data breach at the end of 2013 that proved to be costly and they are still subject to investigations and private litigations costing them millions of dollars. JC Penney has suffered...
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...ABSTRACT The purpose of this project is to determine multinational corporate sustainability within the oil industry and perform country analysis, industry analysis, and analysis of firm’s international strategies. INTRODUCTION The five oil companies that we chose from the 2010 Global Fortune 500 are ExxonMobil, Sinopec, ConocoPhillips, Petrobras, and Lukoil. In our project, we performed analysis on the 10K report of domestic companies, as in ExxonMobil and ConocoPhillips and the 20F report of foreign companies, as in Sinopec, Petrobras and Lukoil. A comparison was done on the five companies to determine if there exists a corelation between sustainability perspective and financial performance. OIL INDUSTRY ANALYSIS Oil accounts for a large percentage of the world’s energy consumption, ranging from 32% for Europe and Asia, and 53% for the Middle East. The world consumes 30 billion barrels of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007. In 2009, world energy consumption decreased for the first time in 30 years (-1.1%), as a result of the financial and economic crisis (GDP drop by 0.6% in 2009). This evolution is the result of two contrasting trends. Energy consumption growth remained vigorous in several developing countries, specifically in Asia (+4%). Conversely, in OECD, consumption was severely cut by 4.7% in 2009 and was thus almost down to its 2000 levels. In North America, Europe and CIS...
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...Methods……………………………………………………………………………… 8 2. Cash Reporting Trends………………………………………………………………………..…. 9, 10 3. Conclusion…………………………………………………………………………………………………..... 10 4. Bibliography…………………………………………………………….…………………………………….. 11 Introduction Coca-Cola Company was established in 1892 in North America, and has since expanded successfully into the international market, now doing business in over 200 countries around the world (Coca-cola.co.uk. 2013). Coca-Cola sells a wide variety of beverages from water to soft drinks, sports drinks, and teas. Coca Cola Company has acquired existing beverage brands over the years, including Minute Maid and Honest Tea, Inc. Coca-Cola follows the strict financial reporting guidelines established by the ISAB and FASB, and reports financial activities in an unbiased and transparent way. The following analysis looks at the financial statements of Coca-Cola Company during the years of 2010,...
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...Integrated Company Analysis Target Corporation December 14, 2010 Group: B7 Eric Dowling Alex Davydov Matthew Melnicoff Soledad Querol Molly Rotsch Contents Executive Summary.............................................................................................................................................3 Marketing Analysis .............................................................................................................................................3 The Target Brand ............................................................................................................................................3 "The Guest" ....................................................................................................................................................4 Target's Competitors ......................................................................................................................................4 Expect More, Pay Less ....................................................................................................................................4 Rise of the Store Brand ...................................................................................................................................5 Up and Up......................................................................................................................................................6 The Introduction of PFresh......................
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...SUMMARY/INTRODUCTION Starbucks identifies itself as “the premier roaster, marketer and retailer of specialty coffee in the world” and fits squarely in the Coffee Shop industry. According to the IBISWorld Industry Report 72221b (Coffee & Snack Shops in the US), the “industry is composed of establishments that prepare or serve specialty snacks and nonalcoholic beverages including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas.” This fits the profile of Starbucks perfectly. Porter’s Five Forces: Supplier Power: Starbucks, for instance, identifies as being susceptible to supply of their coffee beans, such as weather, natural disasters, crop disease, general increase in farm inputs and costs of production, inventory levels, and political and economic conditions; all of these have a significant impact on crop pricing. Reliance on a singular bulk commodity, namely coffee beans, leads to high exposure should there be any roadblocks in supply come up. Many of these factors are out of companies’ control, such as material interruption in service providers and distribution channels, increased trade taxation, shipping embargoes or customs restrictions, or any natural disasters which may threaten the supply chain. (Information sourced from Starbucks Fiscal Report, 2014) Threat of Substitutes (High): Aside from heavy competition from storefront competitors, coffee snack shops face substitution from alternate sources (any tea, juice, soda, or other beverage...
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...Medtronic, Inc. (NYSE- MDT) Principal Office: 710 Medtronic Pkwy., N.E. Minneapolis, MN 55432, (763) 514-4000 Website: www.medtronic.com NAICS: 325412: Pharmaceutical Preparation Manufacturing Primary SIC: 3845- Electromedical and Electrotherapeutic Apparatus Manufacturing Secondary SIC: 339112- Surgical and Medical Instrument Manufacturing. Auditor: PricewaterhouseCoopers LLP, New York, NY Primary Bank: Wells Fargo Bank, N.A., Minneapolis, MN Company started: 1949 Number of Employees: 45,499 Table of Contents: Sl. | Topics | Page | 1 | General Description of Medtronic Inc. | 1 | 2 | Challenges 2.a. Medical Device Industry2.b. Medtronic Inc. | 3 | 3 | Ethical issues | 5 | 4 | Financial Analysis4.a. Financial Analysis of 10K 4.b.Cost and expenses analysis 4.c. Financial Ratios | 689 | 5 | Industry/Competitor Analysis | 11 | 6 | Conclusion | 13 | 7 | Bibliography | 14 | By Geethapriya Setty (100918266) Address: 1300 Hennepin Ave, Apt M101, Minneapolis, Minnesota-55403 Section 1: General Description of Medtronic Inc. Medtronic Inc., a medical technology company, was founded in 1949 by Earl Bakken and Palmer Hermundslie. It was incorporated in 1957 in Minneapolis, Minnesota. They were the first to create a wearable cardiac pacemaker in 1957. They have been able to expand their business from a small repair company, which serviced medical equipment in hospitals, to being able to...
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...Rite Aid Corporation-Long Term Debt Rite Aid is one of the leading drug store chains within the United States. Rite Aid predominantly operates on the east and west coast with a high degree of competition from other drug store chains such as Walgreens and CVS. As a result of both the weak economic conditions along with the high degree of competition Rite Aid faces, I would expect to see a large amount of debt on Rite Aid’s 10K report for fiscal year ending February 27, 2010. A. a. Secured debt is protected by assets given up as collateral by the borrower to protect the lender in the event of default. Unsecured debt is not protected by any such collateral and is generally more risky. Secured debt restricts the use of assets. The restrictions placed on assets are one rational for separating both secured and unsecured debt items. b. Guaranteed debt can be defined as debt that has a guarantor or a secondary promise to pay the debt in the event the borrower defaults. Rite Aid’s subsidiaries have provided the guarantee according to note 11 of the 10K report. c. Senior - senior debt describes the debt first repaid in the event of bankruptcy. Senior is simply a term to describe a position of repayment in the event of bankruptcy. Fixed Rate – fixed rate refers to the interest rate on outstanding debt. If debt is fixed the interest rate is set at a predetermined rate and will not change regardless of market conditions. Convertible – the term convertible debt refers to debt...
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...Wholesale segment consists of two divisions: Free People and Leifsdottir. The Free People division designs, develops and markets young women's contemporary casual apparel. The Leifsdottir division designs, develops and markets sophisticated women's contemporary apparel, including dresses, tops, bottoms, as well as shoes and accessories. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at 5000 South Broad Street, Philadelphia, Pennsylvania 19112-1495, Phone: 1- 215-454-5500. Urban Outfitters is an Apparel Retailer in the consumer services sector with a projected Revenue of $2,441,876.80, Net Income of $265,353.48 and an estimated continued Sales Growth rate of 10% through 2012. In the following report, you will find a detailed company overview of Urban Outfitters, compiled of business markets, executive teams, and competitors. Included is a historical financial statement analysis containing Consolidated Balance, Income, Cash Flow statements, and Ratio analysis. A Three-year Pro-Forma statement with...
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...Group Case Study TABLE OF CONTENTS OVERVIEW OF COCA-COLA 3 HISTORY 3 MANAGEMENT 3 DISTRIBUTION 5 SIZE OF COMPANY 5 LOCATIONS OF FACILITIES & CORPORATE HEADQUARTERS 6 STRATEGIC GOALS AND OBJECTIVES 6 COCA-COLA’S VISION 7 PRODUCT LINES, CUSTOMERS, AND MARKET SECTORS 8 FINANCIAL ANALYSIS 9 FINANCIAL ANALYSIS INTRODUCTION 9 HORIZONTAL ANALYSIS 10 VERTICAL ANALYSIS 12 LIQUIDITY ANALYSIS 14 EFFICIENCY ANALYSIS 15 SOLVENCY ANALYSIS 17 PROFITABILITY ANALYSIS 19 MARKET ANALYSIS 21 CONCLUSION 23 APPENDIX A 24 COCA-COLA’S SUBSIDIARIES 24 APPENDIX B 26 FINANCIAL DOCUMENTS 26 COCA-COLA CONSOLIDATED BALANCE SHEET 26 COCA-COLA INCOME STATEMENT 27 COCA-COLA STATEMENT OF CASH FLOWS 28 COCA-COLA’S STATEMENT OF SHAREHOLDERS’ EQUITY 29 PEPSI CONSOLIDATED BALANCE SHEET 30 PEPSI CONSOLIDATED INCOME STATEMENT 31 PEPSI STATEMENT OF CASH FLOWS 32 PEPSI CONSOLIDATED STATEMENT OF EQUITY 34 VERTICAL AND HORIZONTAL ANALYSIS 35 REFERENCES 40 OVERVIEW OF COCA-COLA Since its creation in 1886, the Coca-Cola Company has become one of the leading beverage entities throughout the world. In fact, Coca-Cola products are now sold in more than 200 countries. Coca-Cola’s business is centered on its production of beverage concentrates, syrups, and finished products. It is responsible for producing and distributing four of the top five nonalcoholic sparkling beverage brands across the globe. These include Coca-Cola, Diet Coke, Fanta, and...
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...Specialization-1 vs. Diversification-0 There is an ongoing debate in the business world between specialization and diversification. Companies like Fitbit and Lululemon benefit from their expertise and innovation in niche markets, whereas companies like PepsiCo and Koch Industries benefit from their diverse product and service lines that appeal to a wide variety of customers in several unrelated markets. So which business strategy is more effective in creating value for the company and its shareholders? While this question is not entirely answered by a quantitative analysis, given that businesses are dictated by more than the numbers, this research report addresses the underlying question by analyzing the conglomerate discount using ten company examples. The Conglomerate Discount The general idea behind the conglomerate discount is that companies with multiple unrelated business segments are unfairly valued in the market place as a result of rolling up the various divisions under one, larger parent company. Proponents of the conglomerate discount theory argue that the market essentially penalizes companies that diversify their portfolio of businesses by valuing the conglomerate company at a market value that is less than what the sum of the values of unrelated segments would imply. Because the operations of the business units vary tremendously, an investor that wants to generate a return on one division of the conglomerate must also invest in the multiple other unrelated...
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...Dean Foods Company Symbol: DF Exchange: NYSE Industry: Food - Diary Products SIC Code: 2026 Current Price: $14.76 52-Week Range: $13.59 -$22.96 I. Company Description Dean Foods Company is a food and beverage firm that processes, manufactures, markets, and distributes dairy products in the United States. Their products include fluid milk, ice cream, cultured dairy items, creamers, and ice cream mix, among others. It is currently the nation’s largest processor and direct-to-store distributor of fluid milk. In addition, the company produces and distributes juices, teas, and bottled water. Headquartered in Dallas, Texas, Dean Foods was founded in 1925 and was later incorporated in 1994. The company offers its products under approximately 50 local and regional proprietary or licensed brands and private labels, including TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Deans, Garelick Farms, Land O’Lakes, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G.Lee, and Tuscan. The company sells its products to retailers, food service outlets, distributors, educational institutions, and governmental entities. II. Comparable Firms The following are the comparable firms selected for relative valuation. Saputo Inc. (SAPIF) Saputo Inc. (SAPIF) produces, markets, and distributes various dairy products in the United States, Canada, and South America. Their product...
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...sources however, the primary source is data that is provided by the company in its annual reports. These annual reports consist of the income statement, the balance sheet and the statement of cash flows. Financial ratios can be used to analyze trends and compare the firm’s financial standing to those of other firms. Financial ratios are classified according to the information they provide. Some of the frequent used ratios are: liquidity ratios, P/E ratio and profitability ratios. Ratios should be viewed as indicators of a company’s background since most of them are not highly meaningful. I will use Target and JCPenney to analyze some of the above mentioned ratios, as well as compare them to the industry. Liquidity Ratios A liquidity ratio provides information on a company’s ability to meet its short-term obligation usually within the next 12 months or the company’s business cycle. Current ratio & quick ratio are two of the most frequently used ratios and both appear on a company’s balance sheet. An acceptable current ratio varies from industry to industry, the higher the ratio the more capable the company is to pay its obligations. The current ratio is equal to the current assets divided by the current liabilities. Target’s current ratio is 1.2 compared to the industry which is 1.1 and JCPenney current ratio is 1.8, compared to the industry which is 1.5. The table below shows a 5 year comparison of Target and JcPenney: USD IN MILLIONS | 2008-01 | 2009-01 |...
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...Capital………………………………………………………….………………………......4 Net Property, Plant & Equipment…………...……………………………………………......4 Total Assets…………………………………………………………………………………………….4 Long Term Assets……………………………………………………….………………………......5 Stockholders’ Equity……………………………………………………………………………….5 Financial Position Data Assessment/Interpretation Summary…………………..5 Financial Ratios…………………………………………………………………………………………………5 Liquidity…………………………………………………………………………………………………5 Leverage………………………………………………………………………………………………...5 Profitability…………………………………………………………………………………………….6 Efficiency………………………………………………………………………………………………..6 Financial Ratios Data Assessment/Interpretation Summary……………………..6 3-year Trend Analysis………………………………………………………………………………………..6 Comparison with at least 2 major competitors………………………………………6-7 Comparison with Industry Standards………………………………………………………7 Supplemental Data………………………………………………………………………………….8 Historical Financial Performance and 3-year Trend Analysis Data Assessment/Interpretation Summary……………………………………………………...8 References………………………………………………………………………………………………………...9 Appendix………………………………………………………………………………………………..10 - 16 I. Introduction Being able to watch movies and numerous televisions shows from anywhere is amazing when you think about it. You are able to stop, rewind, and fast word through numerous...
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