...Executive Financial Analysis Report the SPRINT Nextel Corporation [pic] December 1, 2013 Table of Contents Executive Summary 3 SPRINT Nextel Financial Statements 4 Income Statements – 2009, 2010, 2011 4 Balance Sheets – 2009, 2010, 2011 5 Financial Ratios 7 Liquidity Ratios 7 Asset Management Ratios 7 Solvency ratios 9 Profitability ratios 9 Stock data & Du Pont Analysis 10 Recommendations 12 References: 13 List of Figures Figure 1 Graphical View of Net Income for SPRINT for the years 2009, 2010, 2011 4 Figure 2 SPRINT Nextel Shareholder’s Equity for the years 2009, 2010, 2011 6 Figure 3 SPRINT Nextel Earnings per share for the years 2009, 2010, 2011 10 Executive Summary SPRINT Nextel is a publicly-traded company (the New York Stock Exchange symbol is “S”) Sprint Nextel offers a comprehensive range of communications services bringing mobility to consumer, business and government customers. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international walkie-talkie capabilities; and an award-winning and global Tier 1 Internet backbone.(“S: SPRINT Nextel,” 2012, Market Watch Inc.). This report will present an evaluation of...
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...Financial Management ------------------------------------------------- BUS508 Dr. Etido Akpan, Professor Financial Management Financial Statements and annual reports are crucial tools for evaluating a business and deciding whether or not to invest in that company. Google and Microsoft are two major corporations that lead Internet technology and information retrieval. Both corporations list their financial information on their respective websites (www.google.com and www.microsoft.com) on their Investor Relations pages for easy access. Google Incorporated (Google) was founded in 1998 by Larry Page and Sergey Brin and was incorporated on September 04, 2008. It was named as a play on the term “googol” which is the mathematical word for the number 10 followed by 100 zeros or 10 100. Google started primarily as a search engine, which is a website that searches the Internet for other websites based on terms entered by the user. Other lines of business include advertising, apps (such as Google Docs, Calendar, and email which Google calls Gmail), mobile and the Android operating system, Chrome (Google’s answer to the internet browser), along with various other products. There are approximately 32,400 full time employees with the majority split between research & development and sales & marketing, the remainder being in general or admin and operations ("Company," n.d.). Advertising is Google’s primary source of income, generating 96% of their 2011 revenue, with the...
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...Financial Management 1. Google, a leader in Internet information searching, is being challenged by other big names in Internet technology. Compare and contrast Google’s business model and financial management with Microsoft’s, which launched Bing. Access Google and Microsoft’s annual reports and financial statements at their Websites. In addition to the text, you may access some other sites and or sources to understand the how to analyze an income statement and a balance sheet. For example, the following sites can provide guidance: 1. Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper. 1. Liquidity measurement ratio: * Current ratio Google: 5.6 times Microsoft: 2.9 times 1. Profitability indicator ratios: * Return on assets Google: 15.6% Microsoft: 23.6% * Return on equity * Google: 19.5% * * Microsoft: 44.2% 1. Debt ratio: * Debt Equity ratio Google: 0.08 Microsoft: 0.2 1. Operating performance ratio: Asset turnover ratio Google: 0.6 Microsoft: 0.7 1. Cash flow indicator ratio: * Dividend payout ratio Google – Nil Microsoft- 0.64/2.69 =23.7% 1. Investment valuation ratio: * Price / Earnings ratio Google: 20.3 times Microsoft: 9.5 times 2. Compare and contrast each company’s business model:...
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...Aetna provides innovative products and services which include: a broad range of insurance and employee benefits products, they were the first national full-service health insurer to offer a consumer-directed health plan, they continue to lead the way with their full line of consumer-directed health care products and they offer a wide array of programs and services that help control rising employee benefits cost while striving to improve the quality of health care, such as case management; disease management and safety programs, integrated medical, dental, pharmaceutical, behavioral health and disability information (Aetna, 2013). They also provide its members with access to convenient tools and easy-to-understand information that can help them make better-informed decisions about their health and protect their faineances against health related risk. I was able to locate Aetna’s 2011 annual report, financial report to shareholders online. It starts with the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) which shows an overview of earnings, cash flows and significant developments for the last three years and an outlook for 2012 (Aetna, 2013). Between 2009 and 2011 the cash flows supported both new and ongoing initiatives which generated substantial cash flows from their business over those three years which was used to support growth strategies, repurchase common stock and contribute to their pension plan (Aetna, 2013). When looking...
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...Mission Statement of Virginia Winery Ltd……………………………………………………………3 Financial plan ………………………………………………………………………………………….3 Task 1 - Develop financial strategies. 1.1-a Assumptions on which the financial plan has been developed……………………………….5 1.1-b Financial objectives in terms of finance requirements………………………………………..5 1.1-c Funding arrangements………………………………………………………………………...6 1.1-d Financial information requirements…………………………………………………………..9 1.1-e Financial performance targets and indicators………………………………………………..10 1.1-f Income statement projections………………………………………………………………...11 1.1-g Balance sheet projections…………………………………………………………………….12 1.2 Identify the appropriate staff and stakeholders within Virginia’s Wines that this plan should be communicated to, to enable effective implementation……………………………………………….13 Task 2 2.1-a Essential financial systems and records………………………………………………………14 2.1-b Legal and financial control systems…………………………………………………………..14 2.2-a A budget which is consistent with the financial strategies and plans…………………………17 2.2-b Revenue and expense projections for each forward period…………………………………...19 2.2-c Revenue and expense projections for each forward period…………………………………...19 2.2-d Balance sheet projection for the year………………………………………………………….20 Task 3 3.1. In monitoring the business operations explain what actions can be taken to ensure Virginia’s Wines achievement of their financial performance targets, and profit and return on investment objectives………………………………………………………………………………………...
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...FINANCIAL MANAGEMENT 1. Explain the Indian Financial Systems. 2. Explain debentures as instruments for raising long-term debt capital. 3. What is Working Capital Cycle? Discuss. 4. What are the characteristics and uses of ratio analysis? Explain with examples. 5. Explain how will you estimate cash flows. 6. Explain Performance Budgeting. 1. What is the importance of cost of capital in Financial Decisions? Explain. 2. Explain the factors determining Capital Structure. 3. What is financial Forecasting? Explain. 4. What is a fund flow statement? Explain its uses. 5. Explain financial statement analysis and tools of financial analysis. 6. Explain the steps to improve efficiency of Cash Management. 7. 1. Business Finance is one of the major factors in all kinds of economic activity. Explain. 8. 2. The main function of financial management is to mobilize funds for investments as and when they are required, at the lowest possible cost and to ensure a fair return to the investors. Explain the various sources of such finances. 9. 3. Examine the details the sources of short term finance. 10. 4. Explain the objectives of inventory management W.R.T its benefits, risks of holding and cost of holding inventory. 11. 5. Explain financial statements and its limitations. What are the tools used for financial analysis? 12. 6. Explain the Indian Financial System Elective: Financial Management...
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...Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper. Liquidity measurement ratio: Current ratio The current ratio is a popular financial ratio used to test a company's liquidity by deriving the proportion of current assets available to cover current liabilities. The concept behind this ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities Profitability indicator ratios: Return on assets This ratio indicates how profitable a company is relative to its total assets. The return on assets (ROA) ratio illustrates how well management is employing the company's total assets to make a profit. The ROA ratio is calculated by comparing net income to average total assets, and is expressed as a percentage. Profitability indicator ratios: Return on equity This ratio indicates how profitable a company is by comparing its net income to its average shareholders' equity. The return on equity ratio (ROE) measures how much the shareholders earned for their investment in the company. Operating performance ratio: Fixed asset turnover ratio This ratio is a rough measure of the productivity of a company's fixed assets with respect to generating sales. This annual turnover ratio is designed to reflect a company's efficiency in managing these significant assets. Cash flow indicator ratio: Dividend payout ratio This...
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... * What methods would you use to plan for financial management including: * What you would analyse in order to find information on previous profit/loss? * How would investigate the reasons for previous profit/loss? * How would you analyse identify future expenses etc…? * How would you analyse cash flow trends? * What requirements might you have in relation to taxation? * What types of software might you need for financial management? * Then discuss the steps involved in creating a budget: * Then you will need to discuss the methods you will use to implement a budget including: * Circulation methods * Risk management * Review methods * Contingencies * Tracking * Compliance and statutory requirements * Identifying types discrepancies ANSWER SHEET (Expandable) Financial managementFinancial management is broadly concerned with the acquisition and use of funds by a business firm. In other words, FM is planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. FM scope may be defined in terms of the following questions:1. How large should the firm be and how fast should it grow? 2. What should be the composition of the firm’s assets? 3. What should be the mix of the firm’s financing?4. How should the firm analyze, plan, and control its financial affairs?Functions of Financial Management1. Financial Planning:It is the duty of...
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...Financial Ratio analyses AND THEIR IMPLICATION TO MANAGEMENT Ratios present relationships between two variables. Financial ratios, therefore, refer to the relationships between statement items or accounts expressed in mathematical fashion. In using ratios, your task is to interpret them as favorable or unfavorable. To do so, you should follow some standards that would determine the favorableness or unfavorableness of the outcome. Some of the standard ratios used are based on: 1. Company budget for the same period; 2. Those used by the industry to which the firm belongs; 3. Those used by the firm’s successful competitors; 4. Those used by the firm using prior periods; and 5. Those used by the analyst in the past. Industry ratios are averages developed by a group of expert involved in research. These empirically-based ratios are used as standards in financial statement analysis. Industries have their own peculiarities hence, experts developed ratios that are suitable for that industry. Since this task is too tedious, analysts resort to using ratios of competitors, which are readily available. There should be consistency in the computation as well as usage of ratios to ensure comparability between results and present their misinterpretations. Just like any financial analysis technique, financial ratios are subject to limitations. Results from financial ratio analysis are understandable since the ratios spring forth from financial statements, which as we have mentioned...
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...Running Head: Financial Management Financial Management Valerie Cazeau Professor Roy Viar Contemporary Business Strayer University Abstract This assignment examines Google as one of the leaders in the information searching industry and its main competitor Microsoft with its introduction of Bing. The examination of these two organizations stem around their business models and their most recent financial statements which include, specific financial ratios, core business ideas, leading services, management styles and their innovation tracks. In addition, this assignment will analyze which company would better survive a major recession, which organization is better to invest in and provide the guidelines for doing so. Introduction To start, the financial ratios of Google and Microsoft will be listed. By doing this, it will create a great platform to analyze the companies’ differences and ultimately conclude which company shows the best resistance to a major recession and ultimately which company may be best to invest in. Here are the six main financial ratios that will be analyzed for Microsoft and Google. Microsoft Google Current Ratio 2.9 5.6 Return on Assets 21.9% 13.9% Return on Equity 39.5% 17.5% Debt Ratio .20 .08 Fixed Asset Turn Over Ratio .7 .6 Dividend Payout Ratio/Cash Flow Per Share $3.12 $34.90 Price/Earnings Ratio 3.64 18.0 (Google Inc. and Microsoft Corporation, 2011. Forbes) ...
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...Financial Management: Microsoft and Google BUS508 Contemporary Business December 12, 2011 The purpose of this paper is to compare and contrast Microsoft’s and Google’s business model and financial management. Microsoft and Google don't share a stage often, being increasingly fierce competitors in areas such as Web search, mobile, and cloud computing, but both are big names in internet technology. Since 1975, when Bill Gates left college to start Microsoft with his friend Steve Ballmer, the company has been responsible for some of the biggest changes in the world of software and technology. Over nearly four decades, Microsoft has developed a broad range of products and services, and the company continues to focus on growing markets for its most popular creations, as well as the new products it launches. Microsoft is perhaps best known for its popular operating system, Windows. It was revolutionary when it was launched, and the many developments and improvements that have been provided by all the subsequent versions have cemented it’s position as the number 1 operating system in the world. Windows 7 is the latest offering, and looks set maintain the software’s popularity, even in an increasingly competitive market. Windows isn’t the only product designed by Microsoft that significantly improved the productivity of the personal computer; their Office suit of products has also become one of the most popular pieces of software in the world. Individually, or as a complete...
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...Financial Markets C h a p t e r - 6 59 helped to keep the money market sound and stable during the financial year 2008. A number of steps were taken for activation of secondary trading in treasury bills/bonds. As a result, the overall money market situation was moderate during FY08. Developments in the money market during FY08 are summarized below: Call Money Market 6.3 The volume of transactions in the call money market depicted a mixed trend during FY08 (Table 6.1) reflecting some brisk activities in the money market particularly during the second quarter of the year. It remained sluggish 6.1 A healthy, transparent and dynamically evolving financial system helps mobilize savings and allocate resources, ensure safe and efficient payment and settlement arrangements and ease financial crisis management. Efforts continued in FY08 to establish a healthy and transparent financial system in the country. In addition to the challenges emanating from the internal and external shocks that affected the real sector, there were signs of strain both in the interbank call market and forex market. Volatility in these two markets was tamed through repo operation and intervention by the Bangladesh Bank. Money Market 6.2 Money market, the important segment of financial market that basically channelizes the short term fund in the country was quite active and vibrant with the participation of both banks and non-bank financial institutions during FY08. The...
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...Diploma of management financial management 1 Assessment 1 Part A 1. What are the record keeping requirements for a business in Australia? All businesses are required to keep records and documents for tax purposes in relation to their business operations. Some of the main reasons for keeping accurate and up-to-date financial records are: Financial records provide information to allow you to monitor the performance of your business; By law, the Australian Taxation Office (ATO) requires you to keep certain business records and penalties may apply if you do not comply; Business is required to keep financial records for a minimum of five years after they are prepared; The obligations to keep records for five years continue even if you sell, close, or retire from the business; The records need to be in plain English and allow for ease of access should the tax office ever wish to see them; If you maintain good financial records, it will be easier and faster to complete the business activity statements and other tax obligations when they are due. 2. What is an audit and how often can a business be audited by the tax office? An audit is the examination of the financial report of an organization - as presented in the annual report - by someone independent of that organization. The financial report includes a balance sheet, an income statement, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies...
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...2012 ------------------------------------------------- University malaya faculty of business and accountancy CBEB 2102 financial management Group Member: Isabelle Chong Sim Yi – CEB 110017 Li Ying – CEB 110716 Yap Hong Zhen – CEB 110084 ------------------------------------------------- University malaya faculty of business and accountancy CBEB 2102 financial management Group Member: Isabelle Chong Sim Yi – CEB 110017 Li Ying – CEB 110716 Yap Hong Zhen – CEB 110084 GROUP REPORT 1 GROUP REPORT 1 Table of Contents Question No. | Details | Pages | 1 | Describe the roles and functions of financial markets in Malaysia. | 1 | 2 | Identify four (4) relevant regulators in Malaysia. | 1 | 3 | Choose two (2) regulators identified in (2) above and justify your selection i.e. explain the reasons for your choice. | 2 | 4 | Explain the roles and activities of the two regulators that you have chosen. | 2 | 5 | Give examples of actual enforcement actions that have been taken by the regulators chosen in (3) above. | 3 | 6 | References | 4 | 1) Describe the roles and functions of financial markets in Malaysia. Financial markets are forums in which suppliers of funds and demanders of funds can transact business directly. There are two operations of financial markets, which are primary market and secondary market. Primary market is financial market in which securities are initially issued; the only market in which the issuer is directly involved in the transaction...
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...Financial management * Finance:- Finance may be defined as that administrative area which is concerned with arrangement of cash and credit effectively. * Business finance:- Business finance is the process of determining the required amount of fund, finding available sources of fund, calculating the nominal and effective cost of each sources of fund, conservating the collected funds properly and allocate the optimally in order to achieve the goal of an organization or a business firm. * Financial management:- Financial management is concerned with the effective use of an economic resource, namely, capital funds. In other words, financial management is that administrative area or set of function which relates to the arrangement of cash and credit so that the organization may have the means to carry out its objectives as satisfactorily as possible. * Real asset:- Assets used to produce goods and services directly are called real assets. A firm requires real assets to carry on its business. Real assets can be tangible or intangible. For example, house, building, equipment, inventories and durable goods. * Financial asset:- Assets that does not produce goods and services but generate income are called financial assets. For example, bonds, stocks, note, mortgage and other claims or real assets as well as securities. * Perfect capital market:- A perfect capital market exists if the following conditions hold:- * There is no transaction cast ...
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