Premium Essay

Cash Flow Analysis – Signal Cable Company

In: Business and Management

Submitted By bryan096
Words 1585
Pages 7
TOPIC : CASH FLOW ANALYSIS –
SIGNAL CABLE COMPANY

Introduction
The Signal Cable Company is a cable manufacturer for analog and digital interconnects, speaker, video and home theater cables. It is located in Tarrytown, New York. The company is well known for “highest standard in quality and customer service” and their “superior design” and “No-Hype approach resulted in one of the best price/performance ratio in the industry”.
After Signal Cable had enjoyed quite a run up in profits over the past few years, the management decided to enter in the fiber optic communications business. The market was growing, the demand increased and the competition was not too severe. Eventually, the company established two additional manufacturing facilities and increased its inventory to meet the needs.

Current Situation
Despite Signal Cable had enjoyed profits in past few years, the accounting statements showed a lower net profit margin. Furthermore, the cash balance and the stock price had fallen recently.
Jay Smith, Assistant to the President, has now the challenge to prepare some feasible answers and suggestions for his boss, Joe Mathis, who has to inform the shareholders about the current situation.

Questions of the Case Study 1. Why has the stock price fallen despite the fact that the net income has increased?
A company’s stock price is depend on its demand and supply in the stock market. There are many factors to influence an investor’s decision of buying or selling the company’s stock. Those factors such as economy of the country, government policy, company’s financial statement and so on.
Despite the Signal Cable’s income statement showed that the net income has increased, but there are some problem in its balance sheet. The main problem is the company’s increasing debts and liabilities, which caused by the recent investments in two additional manufacturing...

Similar Documents

Premium Essay

Cash Flow Analysis

...1 Cash Flow Analysis Signal Cable Company When Jay Smith took the job of Assistant to the President, two years ago, things were going rather well at the Signal Cable Company. The company was on an expansionary path and had branched into the fiber optics business. The prospects looked good and the economy was strong. The threat of competition was not too severe. Due to the expectation of increased demand for fiber optic communications, the company had established two additional manufacturing facilities, and significantly increased its inventory. Signal Cable had enjoyed quite a run up in profits over the past few years. However, when the accounting statements were prepared for the current year, the results showed a lower net profit margin. More importantly, there was a severe drop in the cash balance of the company and the stock price had recently fallen from $7 to $5.50 per share. Jay knew that the shareholders would be very concerned and possibly irate. He was also sure that his boss, Joe Mathis, would have to 2 Case 1 Signal Cable Company come up with some feasible answers and suggestions as to how the liquidity problems could be alleviated. This concern was primarily important since the firm had been expecting to raise some short-term capital in the immediate future. Jay's expectations were fulfilled when Joe called him up and asked him to prepare a report explaining the financial condition of the irm. Table I and 2 present......

Words: 722 - Pages: 3

Premium Essay

Cash Flow

...Jim DeMello Case 1- Signal Cable Company; Cash Flow Analysis Case 2- Bigger Isn't Always Better; Financial Ratio Analysis Case 3- Playing the Numbers Game!; DuPont Analysis Case 4-Growing Pains; Financial Forecasting Case 5- There’s More to Us Than Meets the Eye!; Financial Analysis and Forecasting Case 6- Lottery Winnings-Looks Can Be Deceptive; Time Value of Money Case 7- It’s Better Late Than Never!; Retirement Planning Case 8- Paying Off That Dream House; Loan Amortization Case 9- Wake Up and Smell the Coffee!; Time Value of Money Case 10- Corporate Bonds-They Are More Complex Than You Think; Bond Analysis and Valuation Case 11- How Low Can It Go?; Application of Stock Valuation Methods Case 12- What Are We Really Worth; Valuation of Common Stock Case 13- The Lazy Mower: Is It Really Worth It?; Estimating Cash Flow-New Project Analysis Case 14- If the Coat Fits, Wear it; Replacement Project Analysis Case 15- The Dilemma at Day-Pro; Comparison of Capital Budgeting Techniques Case 16- Too Hot to Handle; Capital Budgeting Case 17- Flirting with Risk; Risk and Return Case 18- I Wish I Had a Crystal Ball; Real Options and Capital Budgeting Case 19- Can One Size Fit All?; Determining the Cost of Capital Case 20- We Are Not All Alike; Divisional Costs of Capital Case 21- Where Do We Draw the Line?: Marginal Cost of Capital and Capital Budgeting Case 22- EVA ? Does It Really Work?; Economic Value Added (EVA) Case 23- It’s......

Words: 739 - Pages: 3

Premium Essay

Dividend Policy

...| | | Dividend Policies Cogeco Cable Inc., Shaw Communications, & Cablevision Systems Corp. | Kristina Kacanski (211565827), Wei Fu (211521242), Guillaume Lacour (213242003)FINE3100 Karen Chiykowski November 14, 2013 | Table of Contents Executive Summary 3 Industry Analysis 4 Business Strategy 5 Industry Dividend Analysis 7 Cogeco Cable Inc. Dividend History 7 Shaw Communications Dividend History 9 CableVision Systems Corp. Dividend History. 9 Dividend Policy Recommendation 10 End Notes 12 Appendices 13 Appendix A: Porter’s Five Forces Analysis 15 i. Porter's Analysis ii. Summary Appendix B: Damodaran’s Dividend Policy and Frictions/Market Imperfections 15 i. Equity Trade Off and Life Cycle of a Firm Appendix C: Revenue Streams. 16 Appendix D: Cogeco Cable Inc. Tables 17 i. Cogeco Cable Inc. - Revenue ii. Cogeco Cable Inc. - Cash iii. Cogeco Cable Inc. - Market iv. Cogeco Cable Inc. - Dividends v. Cogeco Cable Inc. - Ratios Appendix E: Shaw Communications Tables 19 i. Shaw Communications - Revenue ii. Shaw Communications - Cash iii. Shaw Communications - Market iv. Shaw Communications - Dividends v. Shaw Communications - Ratios Appendix F: Cablevision Systems Corp. Tables 22 i. CableVision Systems Corp. - Revenue ii. CableVision Systems Corp. - Cash iii. CableVision Systems Corp. - Market iv. CableVision Systems Corp. - Dividends v. CableVision Systems Corp. -...

Words: 6927 - Pages: 28

Free Essay

Mgmt 303 Swot Anaylisis

...Verizon SWOT analysis MGMT 303 DeVry University Julia Smith May 19th, 2012 Verizon Communications Inc. is a provider of communications services with for operating segments: Domestic Telecom, Domestic Wireless, information Services and International. Domestic Telecom is services principally represent Verizon’s telephone operations that provide local telephone services in 29 states and the District of Columbia. Domestic Wireless are products and services which include wireless voice and data services and equipment sales across the United States. The Information Services segment encompasses Verizon’s domestic and international publishing businesses, including print SuperPages and electronic SuperPages.com directories, as well as Website creation and other electronic commerce services. This segment has operations principally in North America and Latin America. The International segment has wire line and wireless communications operations and investments primarily in the Americas, as well as investments in Europe. The Company was formed on June 30, 2000; with the merger of Bell Atlantic Corp. and GTE Corp. Independently both companies managed its own success. GET had over 7 million wireless customers, close to 35 million land lines distributed between the United States, Canada and the Caribbean. Bell Atlantic enjoyed over 40 million mobile customers; at the moment was the world’s largest directory information service......

Words: 1345 - Pages: 6

Free Essay

A Report on Business Plan

...to submit the report on Business plan. We have tried to gather all necessary information on the concentrated part of the report to enrich it. We believe that with our limited knowledge, this report will provide a core concept about a Business plan. We have tried our level best to put thorough efforts for preparing the report. Any shortcoming or flaw may arise as we are very novice in this aspect. We will wholeheartedly welcome any clarification and suggestion about any view and conception disseminated in our report. Sincerely Yours Member of the GlobeNet BBA, 5th Semester (Sec-B) Department of management studies Group List Executive Summary GlobeNet Wireless Broadband will be an innovative start-up company that will provide wireless broadband internet connections to several Dhaka Metropolitan Areas utilizing Wi-MAX technology, proprietary antennas and repeaters. GlobeNet will be able to serve a larger area with broadband Internet connections. GlobeNet will be founded by Fahad Karim, with a MBA and an undergraduation on Computer Science from Harvard University (USA), Fahad has the skills to execute on this well-researched business plan. Fahad spent two years at Karim Associates, which gave him not only an incredible and reasonable boost in confidence to accomplish a business venture, but also provided him with solid project management skills and experience. The market for wireless broadband Internet connection in......

Words: 4005 - Pages: 17

Free Essay

News Corp in 2005: Consolidating the Directv Acquisition

...COMPANY PROFILE | | News Corporation Limited (NWS) is an international media company engaged in the publication of newspapers, magazines and books; production and distribution of movies and TV series; TV broadcasting; cable and satellite subscriber TV; and owns and develops internet properties. NWS operates primarily in the US, the UK, Australia and Asia. It is the world's second-largest media group as of 2011 in terms of revenue, and the world's third largest in entertainment as of 2009.  The DIRECTV Group, Inc. (DIRECTV) is one of the leading providers of digital television entertainment services in the US and in Latin America. The company is engaged in acquiring, promoting, selling, and distribution of digital entertainment programs. They serve both commercial and residential customers through satellite. DIRECTV is also engaged in producing its own entertainment programs such as Hometown Heroes, Supreme Court of Comedy, Passions, Championship Gaming Series and others. Company Vision, Mission Statement News Corp. : "Creating and distributing top-quality news, sports and entertainment around the world." DirecTV: “To provide customers with the best video experience in the United States and Latin America both inside and outside of the home by offering......

Words: 3170 - Pages: 13

Free Essay

Economics

...(Howson, Cindy, Successful Business Intelligence 2013). With the run of time that small firm can turn into a great company or corporation and become a leading monopolistic on the market. This is why I have decided to research Time Warner Cable. The history of the company is unlike any other with their cutting edge digital technology, range of home entertainment and information choices for the whole family to enjoy, and superior customer service that demonstrates customer satisfaction is the company's number one priority. In the late 1940s, entrepreneurs using simple antennas an Army surplus coaxial cable created the country's first cable television system and revolutionized the way Americans watched television (Warner Sperling, Cass, The Brothers Warner 2008). More than 70 years later, Time Warner Cable (TWC), the second largest cable provider, owns and manages advanced, well clustered cable systems throughout the United States and is ready to embark on it's next life phase of merging with Charter Communications. With the spread of the medium of television in the years following World War II, entrepreneurs in rural and valley towns figured out a way to bring distant broadcast signals to their communities using antennas and coaxial cable. During this time, visionaries emerged who would shape both the cable industry as a whole and Time Warner Cable. By the late 1960s, cable is positioned for an explosive growth. A few of the early pioneers are Bill Daniels and Monroe......

Words: 6422 - Pages: 26

Premium Essay

Linear Dividend Policy

...split). The rationale behind the dividend policy is to show investors that owning Linear’s shares is not as risky as owning shares of most technology companies, and on top of that, to attract dividend income investors. Quarterly dividend has been consistently increased every year by an average of 23.52% (Exhibit 1). The highest hike was in the fourth quarter of 2000, where the company increased the quarterly dividend from $0.02/share to $0.03/share (50% increase). Over the time, the average dividend yield is 0.46%. When the share price was at its peak, the dividend yield was at the lowest (0.15% - 0.19%). In contrast, the dividend yield was nearly 1% in the Q1 2003 when the share price dropped to $20.72 (Exhibit 2). Most of the companies in the Semiconductor Index (SOX) do not pay dividend. Linear Tech is one of the few companies that pays dividend, along with Intel, Motorola, STMicroelectronics, and Texas Instruments. Maxim recently announced to start offering quarterly dividend of $0.02 per share, yielding about 0.21%. Therefore, Linear Tech’s dividend yield is comparable to those dividend paying companies (Exhibit 3). Historically, Linear Tech paid out between 8.9% and 14.40% (an average of 11.33%) of its net income as dividend. In the past two years (2002 and 2003a), however, the company paid out about 27% of its net income as dividend, more than doubled the pay-out ratio in the previous years. The increase in Dividend Policy at......

Words: 3200 - Pages: 13

Premium Essay

Disney Annual Report 2008

...Time Warner Cable 200 8 A N N U A L R E PO R T Time Warner Cable is the second-largest cable operator in the U.S. and a major provider of communications and entertainment services to homes and businesses. Our technologically advanced, well-clustered operations serve about 14.6 million customers in 28 states, with our largest operations located primarily in five geographic areas: New York State (including New York City), Texas, Ohio, the Carolinas and Southern California (including Los Angeles). Time Warner Cable is built on a foundation of technological innovation and commitment to the communities we call home. VIDEO • Time Warner Cable offers packages of ff cable channels to fit a wide variety of budgets. With Digital Cable, customers have access to more than 200 channels, On Demand, parental controls and optional DVR service. • Time Warner Cable’s Digital Cable is the “Home of Free HD.” Our highdefinition service delivers the best fi HD channels and HD On Demand. • On Demand gives customers thousands of viewing choices instantly, with new movies, shows and sporting events added every day—many in HD. • Start Over® is an Enhanced TV feature that lets viewers restart a program already in progress, at the push of a button, even if they haven’t programmed their DVR. HIGH-SPEED DATA • Road Runner High-Speed Online delivers a blazing-fast Internet connection with speeds up to three times faster than standard DSL packages. • Security Suite comes with every subscription and......

Words: 96738 - Pages: 387

Premium Essay

The Assessment of Performance Evaluation of Cable Industry in Bangladesh

...measurement of a company has been the subject matter of discussion to the planners, administrators, managers, economists and academicians since long. There is a need for comprehensive consideration company so that their performance can be objectively evaluated. The major indicators may be – I. Liquidity Ratio II. Profitability Ratio III. Solvency Ratio IV. Efficiency / Activity Ratio V. Common-size Statements VI. Trend Analysis VII. Multivariate Model of Distress Prediction. Scope of the Study: Eastern Cables Ltd. is the holding Cables organization carrying operation in Bangladesh. This Study is limited to only Eastern Cables Ltd. This Study could not cover other private business operating in Bangladesh mainly because of difference in objectives and management structure. The empirical analysis of the Study covered 5 years ranging from 2000 to 2005 Methodology of the Study: The key areas of performance evaluation can be identified as financial performance, managerial performance, operational performance, marketing performance or the overall performance. A proper evaluation of the financial performance of any company can be done through the techniques of financial analysis of the accounting data presented in the financial statements which includes mainly – I. Balance Sheet II. Profit & Loss AIC and III. Cash / Fund flow......

Words: 6960 - Pages: 28

Premium Essay

Netflix

...direct purchases or revenue sharing agreements. Streaming content is generally licensed for a fixed fee for the term of the license agreement but may also be obtained through a revenue sharing agreement. DVD library is its non current asset. The Company amortizes its direct purchase DVDs, less estimated salvage value, on a “sum-of-the-months” accelerated basis over their estimated useful lives. The accounting method for backlog DVD’s was changed after 1994. Our recent survey work suggests that NFLX streaming offering is compelling and should get more so as it acquires additional streaming content. In turn, this is creating a virtuous cycle whereby NFLX sub base grows, leading to greater financial resources to acquire more content to improve the user experience and continue to grow the sub footprint. Additionally we believe DVD costs may fall quicker than expected, insulating margins as NFLX continues to acquire expensive streaming content. The business delivered disruptive technologies that changed the business landscape and the public have turned to their products. Valuation The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant...

Words: 2677 - Pages: 11

Premium Essay

Business Plan

...Title: Business Analysis and System Development (Name) (Course Name) (Institution Name) 28th April 2010 Table of Contents Introduction 2 SWOT analysis 3 PEST Analysis 4 Political factors 5 Positives 5 Economic Factors. 6 Sociocultural factors 6 Evaluation 7 Technological factors 7 Five forces Analysis 7 The Threat of Entry. 7 The Power of Buyers. 8 The power of suppliers. 8 The threat of substitutes 8 Competitive Rivalry 9 Information systems 9 Hardware requirements for the development of an information system 9 The computer 9 Printer 10 Scanner 10 Photocopier 10 Software 10 System software 10 Application software 10 Software requirements for the development of an information system 11 Transaction processing systems: 11 Management information and reporting systems: 11 Decision support systems: 11 Experts System 12 Networking requirements 12 Communication end points 12 Interface cards 12 Repeaters 12 Hubs, Bridges, Switches 13 Software recommendations 13 System Software 13 Application software 13 Enterprise software 13 Content Access Software 13 Information Worker Software: 14 Educational Software: 14 Management summary 15 Recommendations 16 Conclusion 16 References: 17 Introduction The demand for effective and efficient services has lead many businesses world wide to seek alternative ways of best satisfying their customers. In today’s service oriented and customer care centered business timely and proactive services are...

Words: 3465 - Pages: 14

Free Essay

Huffman Trucking Service Request Sr-Ht-010

...Huffman Trucking Service Request SR-ht-010 NTC/361 Huffman Trucking Service Request SR-ht-010 Huffman Trucking is a national transportation company that provides carrier services for various vendors, including the United States Government. At present the company has a main office in Cleveland Ohio and hubs located in California, Missouri, and New Jersey (Apollo Group, Inc., 2012) . The ability to remain competitive relies on capable employees and efficient systems that operate at full capacity. The company is in the midst of developing the yearly budget and is examining all of the current systems in place. The Chief Information Officer (CIO) has requested a full review of all the current telephone and data network systems in all locations. Along with the review, recommendations for changes are also required. This document will outline Huffman Trucking’s systems and identify areas for improvement to maintain the company’s high level of service. Telephone Systems Looking at the current systems in the four plants and offices one can see that all four of the offices and plants have different telecommunication systems. Huffman Trucking has locations in four states with offices and plants located in California, Missouri, New Jersey, and Ohio. Many of the locations are using wiring that is not adequate for the system to have the capabilities to function in a business capacity. The California and New Jersey locations use a plain old telephone system (POTS), Private Branch......

Words: 3605 - Pages: 15

Premium Essay

Research

...transmitted, stored or used in any form or by any means—graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act—without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706. For permission to use material from this text or product, submit all requests online at cengage.com/permissions. Further permissions questions can be e-mailed to permissionrequest@cengage.com. Some of the product names and company names used in this book have been used for identification purposes only and may be...

Words: 234459 - Pages: 938

Free Essay

Term Paper

...world like never before. Our potential to expand our franchises outside the U.S. is limitless, and, with many international markets still in their infancy, largely untapped. It is through this lens – dynamic content, global reach and entrepreneurial culture – that we view both the foundation and future of 21st Century Fox. While I’m not one to look back, the past 12 months have made me especially proud. At the same time, our prospects for the next 12 months and beyond are as bright as ever. The following review of our cable business, sports programming, broadcast network, film and television assets and satellite services is a snapshot of the strong foundation we have built over the years, which will serve us well as we focus on the opportunities that lie ahead. Business Segment Overview The outstanding performance of our cable channels business has proved to be the backbone of our financial results, and its success continued this past year. In fiscal year 2013, the Cable Network Programming segment surpassed $10 billion in revenue for the first time in our history, and in many ways we feel like the business is just getting started. We also grew this segment’s operating...

Words: 89756 - Pages: 360