...Group Work: Financial Statement Analysis of your selected listed Bangladeshi company Guideline for Term Paper Dear All, Please complete the strategy analysis and accounting analysis based on the following guideline by next 2 weeks for the company allocated to your group for term paper, and give me the update. Topic Specific Topics Key Questions Strategy Analysis Industry Analysis (Five forces Model) Rivalry -How do firms in an industry rivalry compete among themselves? -What are the dimensions of the competition? Threat of new entrants -What are the legal entry barriers for a new firm? -What are the economic entry barriers for a new firm? Threat of substitute products -Is there any substitute products of the industry? -If so, What is the level of price difference with substitute product? Bargaining power of buyers -What is level of buyers’ price sensitivity? -What is the buyers’ relative bargaining power? Bargaining power of suppliers -How many numbers of suppliers? -How much critical the product is to buyers? Competitive Strategy Analysis Which competitive strategy the company has taken? Cost leadership or Differentiation Corporate Strategy Analysis -Are there significant imperfections in the product, labor or financial markets in the industry in which the company is operating? - Does the company have special resources such as brand names, proprietary know how, access to scarce distribution channels, and special organization...
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...ANALYSIS OF FINANCIAL STATEMENTS OF COCACOLA COMPANY INTRODUCTION Coca-Cola Company is the largest distributor, manufacturer, and marketer for the non-alcoholic syrups and beverage concentrates in the world and builds its own trademark in the world. Contributes to around fifty-two billion servings of beverages every day worldwide and it will continue to rise in the followings years due to the booming in the nonalcoholic beverage business. This paper purposely tries to analyze published financial statements of coca-cola company so as to offer relevant recommendations on efforts to be made to ensure increased productivity of the company as well as ensuring that the company is a global market leader. Part 1 of the paper tries to analyze and give an overview of regulatory framework of IFRS and FA regulatory framework of Kenya. The other part of the paper analyzes the financial statements using ratios which are categorized in six categories namely; profitability, liquidity, activity, gearing and market ratios. 1.1 International Financial Reporting Standards (IFRS) under IASC Foundation and IASB with its committees. The IFRS Framework describes the basic concepts that underlie the preparation and presentation of financial statements for external users. The IFRS Framework serves as a guide to the Board in developing future IFRSs and as a guide to resolving accounting issues that are not addressed directly in an International...
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...FINANCIAL ANALYSIS OF DELL AND HP Executive Summary 2 This financial analysis report examines two high profile competitors, Dell and Hewlett Packard (HP), within the computer/technology industry in order to evaluate company performance and financial health. Overall company strategies were reviewed and considered along with the financial analysis to come to a conclusion for recommendation of investment. The reports introduction gives an overview to the computer/technology industry and expands on the strategies executed by Dell and HP. The financial analysis covers both companies’ common-size income statements and balance sheets, comparative income statements and balance sheets, and various financial statement ratios such as liquidity, capital structure and solvency, return on investment, operating performance, asset utilization and market measures from year 2006 to year 2010. A pro forma look ahead estimated financial performance is generated for each company and assumptions explored that helped derive the financial data for the pro forma. Conclusions are drawn from the above stated financial analysis as well as areas for improvement and investment recommendations. Dell and HP are both well known companies competing in an ever evolving and expanding industry. The industry is in every segment from personal to educational to professional. HP is a more mature company having been founded in 1939, but Dell made waves throughout not only the computer/technology industry but in...
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...Table of Contents 1.0 Introduction 4 2.0 Methodology 4 3.0 Non-Financial Information 4 3.1 SWOT Analysis 5 3.2 Porter’s 5 forces model 5 3.2.1 Fig 1 Porter's five forces Model 6 3.3 Corporate Social Responsibility 7 4.0 Financial Information 7 4.1 Directors’ Report 9 4.2 Auditors’ Report 9 4.2.1 Understanding Unqualified and Qualified Phrases 10 4.3 Financial Notes 10 5.0 Balance Sheet 11 5.1 Assets 11 5.1.1 Cash and Cash Equivalent 11 5.1.2 Temporary Investments 12 5.1.3 Accounts Receivable 12 5.1.4 Inventory 12 5.1.5 Prepaid Expenses 13 5.1.6 Total Current Assets 13 5.1.7 Property, Plant and Equipment (PPE) 13 5.2 Liabilities 14 5.3 Stockholders’ Equity 14 6.0 Working Capital 14 6.1 Current Ratios 15 6.2 Financial Leverage 15 7.0 Income Statement 15 7.1 Profit Margins 16 8.0 Cash Flow Statement 17 8.1 Financial Ratio Analysis 18 8.1.1 Return on Capital Employed ROCE 18 8.1.2 Calculating ROCE 18 8.1.3 Return on Assets ROA & Return on Investments ROI 19 8.1.4 Calculating Return on Fixed Assets ROFA 19 9.0 Summary 20 References 24 1.0 Introduction. Abacus Accounts are seeking to outsource most of their Facilities Management operations to an external FM provider; these will include: maintenance, cleaning, catering, security and vehicle management. They are a large business which is seeking to identify a strategic partnership and will therefore, only be willing to deal with significant organisations...
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...April 30 2014 Financial Analysis Apple I am not a huge fan of Apple products, although I am a big fan of their company. No matter what you read in the press or business press about Apple the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit possible from every sale it makes. Apple’s financial strategy is to maximize , a financial strategy that has been put to use since Steve Jobs returned to the company. However every thing great must have a downfall, Apple doesn't have much weaknesses but they might affect the company financially in the long run. One of Apple strengths is Customer loyalty combined with expanding closed systems. First, Apple now has a full range of apps, software and products that are linked and support each other. Second, new products and programs will be released soon (iTV), hence expanding the system. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed system, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed system and customers’ loyalty increases competitive advantage. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s ability of producing innovative products is the strength the company builds upon and is able to bring the best products to the market. Apple’s financial performance is...
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... “Media and Promotional products history in UK “ Globally promotional merchandise is famous for promoting brands, products, and corporate identity as the corporate companies in UK and Ireland have Promotional merchandise as their main trade of sales. According to studies shown, promotional products became popular with calendars, apparel, balls, magnets, holders, shirts and candy which were dated back to George Washington. UK and Ireland formally emerged in 1950’s to create the industry of promotional merchandise since previously there was no organized industry to cater the creation, distribution of promotional pens and accessories. Sooner later, the newest designs of pads and t-shirts became the hottest popular apparel that was imprinted in ink. Published in 2008, the UK and Ireland promotional merchandise industry had an overall value of £850m and by Mid 2009 the market went down by £712m taking the UK’s worst ever recession grip. The top 10 promotional merchandise products published in July 2009, were promotional pens, bags, clothing, plastic items, USB memory sticks, mugs, leather items, polyurethane conference folders, and umbrellas. However the market may be saturated with promotional items but it’s known as a great way to create loyalty among companies that would help...
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...Kellogg's (also Kellogg, Kellogg Company and Kellogg's of Battle Creek) is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Froot Loops, Corn Flakes, Frosted Flakes, Rice Krispies, Special K, Cocoa Krispies, Keebler, Pringles, Pop-Tarts, Kashi, Cheez-It, Eggo, Nutri-Grain, Morningstar Farms, and many more. Kellogg's stated purpose is "Nourishing families so they can flourish and thrive." Kellogg's was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906, by Will Keith Kellogg as an outgrowth of his work with his brother John Harvey Kellogg at the Battle Creek Sanitarium following practices based on the Seventh-day Adventist Church. The company produced and marketed the hugely successful Kellogg's Toasted Corn Flakes and was renamed the Kellogg Company in 1922. In 1930, the Kellogg Company announced that most of its factories would shift towards 30 hour work weeks, from the usual 40. W.K. Kellogg stated that he did this so that an additional shift of workers would be employed in an effort to support people through the depression era. This practice remained until World War II, and continued briefly after the war, although some departments and factories remained locked into 30 hour work weeks until 1980...
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...Analyzing AsiaCell Financial Statements Financial Statements Analysis 1/17/2016 Prepared by: Azhy Azad Ahmed Ari Sherzad Zamo Zana Mohammed Omed Contents Introduction 3 Financial statements of AsiaCell Company 4 Financial statements Differences: 6 Definitions: 7 Liquidity Ratios: 7 Solvency Ratios: 7 Profitability Ratios: 7 AsiaCell Ratio Analysis 8 Liquidity Ratios: 8 Solvency Ratios: 12 Profitability Ratios: 14 Conclusion: 18 Introduction We are analyzing the financial position of AsiaCell Company during the years (2011, 2012, and 2013); the financial statements are provided on Iraqi Exchange and commission website (www.isx.iq). It is important that you fully understand the data presented here. Please be aware that the analysis presented is not a prediction of the future but rather a tool for monitoring the progress of AsiaCell business over time. This information should factor into your decision making, but it should certainly not be the only factor in your business decisions. Be sure to consult all appropriate resources and professionals before making any decisions that may affect the financial health of AsiaCell Company. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Financial statements of AsiaCell Company Financial statements Differences: There many differences...
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...analyzing the financial data of both Lockheed Martin and Northrup Grumman I would conclude that Northrup Grumman is in slightly healthier financial condition in 2013 out of these two companies. This conclusion is based on a number of different financial ratios calculated from the figures in each company’s annual report. These include liquidity ratios, solvency ratios, funds management ratios, and profitability ratios. Comparison of these ratios between each company show Northrup Grumman having slightly better numbers and an advantage in some key ratios such as the Current Ratio, Acid-Test, and Profit Margin. The spreadsheet used to calculate these ratios is attached and will be referenced to through the analysis discussion. The first data analyzed was looking at a couple liquidity ratios for each company. These ratios included the Current Ratio and Acid-Test, also known as the Quick Ratio. As shown in the spreadsheet, both of these values showed Northrup Grumman as having slightly better ratios. This means that Northrup Grumman has more readily available funds and better protection against liquidity problems. They also have greater quick assets to pay off current liabilities immediately if needed. The second set of data was taking a look at the solvency ratios. In this set Lockheed Martin has a slight edge in Times Interest Earned; however Northrup Grumman has quite the advantage in Times-Fixed-Charges-Earned and Debt-to-Equity. Times Interest Earned shows how well a company is positioned...
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...Panera Bread Company Financial Analysis In 2017 the Panera Stock were going for $315 per share in cash, in transactions valued at approximately $7.5 billion, including assumption of $340 million of net debt. For this Panera Bread Company, they came out with themes on digital, clean food, loyalty, delivery, and new formats for growth. Panera is the leading industry in digital with 26% of sales digital. They are the first and only menu with a clean menu. They have a loyalty program which is the largest in the industry with 25 million members and half of transactions through the program. There omni channel approach leads the industry, with delivery now available in 24% and their catering sales growing 11%. Their Company owned bakery café...
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...Financial Analysis Tools Nicola Maclin American Military University Managers should have the ability to assess performance of decisions they have made or intend to make, through structured and robust financial analysis. Managers need tools to forecast or predict as they struggle to make decisions on a daily basis to execute business strategy for the company. Financial analysis tools can drive projections and predictions in many areas of the business, from planning for production and distribution to decisions on a product or service. Managers can use these tools to both assess and improve business performance. Performance evaluation is an important component of managing a business. Managers need feedback to evaluate how well they have accomplished business strategy and managed key business process. Managers need to be able to link strategy with profitability. Financial analysis tools can help provide that much needed feedback. Financial data can be used to compute ratios analysis. These financial ratios gives managers the first look at the company’s vital signs and is used to assess a complete financial health and identify operational problems. Ratio analysis allows management to quickly and efficiently address concerns like: return on capital investment and the company’s profit margin. Ratio analysis can be an effective and useful management tool if ratios are calculated on items that are meaningful and where practical steps can be taken to make improvements in...
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...What is financial accounting? Financial accounting is regarded as a professional in modern society. Most of the firms, especially the large ones, need it and have a particular department or team called accounting. In universities, financial accounting becomes a compulsory subject which BBA students must study. It is so well known that almost all people have heard of it. What actually is financial accounting? More specifically, what the main objectives or roles financial accounting has so that firms need it at a critical manner? Generally speaking, the purpose of accounting is to give relevant data or information that is necessary to make sound decision for the firms. And the main objective of financial accounting is to prepare financial statements such as statement of financial position, income statement, statement of owner’s equity and statement of cash flow. The preparation must be guided by generally accepted accounting principles, “GAAP” in short, of the physical location. The statements are then used to tell the external users the performance of the firm (Eisen, 2003). And the primary need for financial accounting, or sometimes called financial accountancy, is to minimize the principal-agent problems in organizations. This is to be done by evaluating and monitoring agents’ (manager) production and presenting the performance to people who interest in. In addition, financial accounting serves a lot of important objectives. It aims to understand the operation of the business...
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...Inter Company Analysis Britannia can be compared with its competitor on the basis of various ratios as mentioned below Current Ratio Britannia has a current ratio of 1.054 in comparison to HUL which has a current ratio of of 0.79.The high current ratio mainly is because of a more than proportionate increase of the Current Assets when compared to the Current Liabilities. Debt Equity Ratio There is a stark comparison between the two companies in terms of funding. While HUL funds its operations from lower and lower loans every year, Britannia increasingly funds its operations through more and more debt, possibly due to lesser cost of debt. This is visible in the DER of HUL at 0.07 and 1.084 of Britannia. Interest Coverage Ratio The interest coverage ratio is a measurement of the number of times a company could make its interest payments with its earnings before interest and taxes. Lower the ratio, higher is the company’s debt burden. This is measured as the ratio between the profit before interest and taxes to the interest amount paid that year. The ICR of Britannia has improved over last year from 20.77 to 29.62.But in case of HUL there has been a drastic improvement .ICR has rose from 122.22 to 409.36. Earning Per Share Over last one year, EPS has declined for Britannia due to drastic decline in profits, and hence the EPS has fallen from Rs 75.51 to Rs 48.77.However in case of HUL the EPS has declined due to slight increase in the number of shares...
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...Attached is the Statement of Cash Flows for the most recent fiscal year. This statement provides an overview of Noskaj Company’s activities for the year which affected the company’s balance of cash. The statement is divided into three sections: cash provided or used by operating activities, investing activities, and financing activities. By examining each of these three sections, you can see how each group of activities affected the company’s ending balance of cash. The operating activities section reflects activity that took place on the company’s income statement. With regard to operating activities, the company took in $534,200 from customers, which reflects the sales revenue for the year less any outstanding accounts receivable from customers...
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...iiste.org Financial Analysis of Selected Pharmaceutical Companies in Bangladesh Md. Tofael Hossain Majumder Department of Accounting and Information Systems, Faculty of Business Studies Comilla University, Comilla, Bangladesh. Email: tofael_cou@yahoo.com Mohammed Mizanur Rahman School of Business and Economics, Atish Dipankar University of Science and Technology Dhaka, Bangladesh. Email: mizancu@yahoo.com Abstract The Pharmaceutical industry plays a vital role in the socio-economic development of Bangladesh. But the net profit of this industry has decreased for the last few years. This study is designed to review the financial performance of this industry, to test its strengths and weaknesses. The financial performance of this industry is measured in terms of Ratio (Profitability, Liquidity, Solvency and Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data mainly relied on Annual Reports and official records. It was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the most of the Pharmaceuticals are not in sound position and it was also observed that the most of the Pharmaceuticals has a lower level position of bankruptcy. The reasons behind this position of the industry are inefficiency of financial management...
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