The document provides an overview of Momentum Metropolitan Holdings Limited's 2014 year-end results. It summarizes the challenging operating environment in South Africa and the insurance industry. Financially, the group achieved strong growth in profits, new business, dividends and return on embedded value. Each of its operating divisions, including Momentum Retail, Metropolitan Retail, Momentum Employee Benefits and Metropolitan Health delivered solid results. The group also outlined its capital management strategy and transition to a new client-centric operating model effective July 2014. Its strategic focus remains on enhancing client-centricity and financial wellness.
- The document reports the financial results of JAKS Resources Berhad for the quarter ended 30 June 2019 and the cumulative period from 1 January to 30 June 2019.
- For the quarter ended 30 June 2019, the company reported a net profit of RM23.9 million compared to a net profit of RM5 million in the same quarter of the previous year.
- Revenue for the quarter increased significantly to RM315.4 million from RM170 million in the previous corresponding quarter, contributing to the higher net profit.
Third Quarter of Fiscal Year Ending March 2018(FY2017) Financial HighlightsRicohLease
Ricoh Leasing Company reported financial results for the third quarter of FY2017 ending March 2018. Net sales increased 2.1% year-over-year to 227.1 billion yen due to steady growth in operating assets. Operating profit of 12.7 billion yen progressed as expected despite higher expenses. For the full year, the company forecasts net sales growth of 2.1% and operating profit decline of 3.1%, with continued expansion of operating assets and a focus on strategic investments.
Fiscal Year Ended March 2015 Briefing on Financial ResulRicohLease
Ricoh Leasing Company reported financial results for the fiscal year ended March 2015, with net sales growing 5.2% year-over-year to ¥2,587 billion. Operating income increased 2.8% to ¥165 billion. The company forecasts further growth in the current fiscal year, with net sales projected to increase 2.8% to ¥2,660 billion and operating income to rise 3.0% to ¥170 billion. Ricoh Leasing will focus on expanding its office equipment, medical, and nursing care businesses and establishing new pillars such as solar power generation and industrial machinery.
The document discusses the financial performance of Oberoi Hotels & Resorts for the financial year 2011-2012. Some key points:
- Total revenue grew 8% to Rs. 1904 crores compared to the previous year. Earnings before interest, taxes, depreciation and amortization grew 2% to Rs. 577 crores.
- Profit before tax declined slightly to Rs. 175 crores from Rs. 183 crores in the previous year. Profit after tax grew 11% to Rs. 134 crores.
- Foreign exchange earnings increased significantly to Rs. 1133 crores from Rs. 875 crores in the previous year. Expenditure in foreign exchange also rose.
Working Capital /Current Assets Management discusses planning, directing, coordinating investment in current assets and liabilities to ensure healthy cash flow. It maximizes performance while balancing investment. Gross working capital is total current assets. Net working capital is the difference between current assets and liabilities. Current liabilities represent short-term funds; excess must be funded with long-term sources. Industries require varying percentages of working capital versus fixed assets. Companies adopt passive, moderate, or aggressive working capital policies based on permanent versus temporary current asset investment. The operating cycle measures the time to complete one production cycle. Estimating working capital involves calculating minimum cash, inventory levels, debtors, and current liabilities to determine net working capital requirements.
This document discusses the use of accounting as a decision making tool for quantity surveyors. It outlines objectives like using financial statement factors and management accounting factors to make decisions. It provides examples of income statements for Company A and B for the year ending 2011. It also discusses ratio analysis, liquidity ratios, activity ratios, financial leverage ratios, profitability ratios, and per share ratios as accounting tools. Budgeting, capital budgeting, cash flow statements, break-even analysis, economic order quantity, and stock ledgers are also covered.
Fiscal Year Ended March 2017 (FY2016) Briefing on Financial ResultsRicohLease
This document summarizes the financial results of Ricoh Leasing Company for the fiscal year ending March 2017. Some key highlights include:
- Net sales reached a record high of 2,911 billion yen, up 5.5% from the previous year.
- Operating profit was 173 billion yen, another record high and up 2.3% from the previous year.
- Net income was 117 billion yen, another record high and up 6.5% from the previous year.
The document provides an overview of Momentum Metropolitan Holdings Limited's 2014 year-end results. It summarizes the challenging operating environment in South Africa and the insurance industry. Financially, the group achieved strong growth in profits, new business, dividends and return on embedded value. Each of its operating divisions, including Momentum Retail, Metropolitan Retail, Momentum Employee Benefits and Metropolitan Health delivered solid results. The group also outlined its capital management strategy and transition to a new client-centric operating model effective July 2014. Its strategic focus remains on enhancing client-centricity and financial wellness.
- The document reports the financial results of JAKS Resources Berhad for the quarter ended 30 June 2019 and the cumulative period from 1 January to 30 June 2019.
- For the quarter ended 30 June 2019, the company reported a net profit of RM23.9 million compared to a net profit of RM5 million in the same quarter of the previous year.
- Revenue for the quarter increased significantly to RM315.4 million from RM170 million in the previous corresponding quarter, contributing to the higher net profit.
Third Quarter of Fiscal Year Ending March 2018(FY2017) Financial HighlightsRicohLease
Ricoh Leasing Company reported financial results for the third quarter of FY2017 ending March 2018. Net sales increased 2.1% year-over-year to 227.1 billion yen due to steady growth in operating assets. Operating profit of 12.7 billion yen progressed as expected despite higher expenses. For the full year, the company forecasts net sales growth of 2.1% and operating profit decline of 3.1%, with continued expansion of operating assets and a focus on strategic investments.
Fiscal Year Ended March 2015 Briefing on Financial ResulRicohLease
Ricoh Leasing Company reported financial results for the fiscal year ended March 2015, with net sales growing 5.2% year-over-year to ¥2,587 billion. Operating income increased 2.8% to ¥165 billion. The company forecasts further growth in the current fiscal year, with net sales projected to increase 2.8% to ¥2,660 billion and operating income to rise 3.0% to ¥170 billion. Ricoh Leasing will focus on expanding its office equipment, medical, and nursing care businesses and establishing new pillars such as solar power generation and industrial machinery.
The document discusses the financial performance of Oberoi Hotels & Resorts for the financial year 2011-2012. Some key points:
- Total revenue grew 8% to Rs. 1904 crores compared to the previous year. Earnings before interest, taxes, depreciation and amortization grew 2% to Rs. 577 crores.
- Profit before tax declined slightly to Rs. 175 crores from Rs. 183 crores in the previous year. Profit after tax grew 11% to Rs. 134 crores.
- Foreign exchange earnings increased significantly to Rs. 1133 crores from Rs. 875 crores in the previous year. Expenditure in foreign exchange also rose.
Working Capital /Current Assets Management discusses planning, directing, coordinating investment in current assets and liabilities to ensure healthy cash flow. It maximizes performance while balancing investment. Gross working capital is total current assets. Net working capital is the difference between current assets and liabilities. Current liabilities represent short-term funds; excess must be funded with long-term sources. Industries require varying percentages of working capital versus fixed assets. Companies adopt passive, moderate, or aggressive working capital policies based on permanent versus temporary current asset investment. The operating cycle measures the time to complete one production cycle. Estimating working capital involves calculating minimum cash, inventory levels, debtors, and current liabilities to determine net working capital requirements.
This document discusses the use of accounting as a decision making tool for quantity surveyors. It outlines objectives like using financial statement factors and management accounting factors to make decisions. It provides examples of income statements for Company A and B for the year ending 2011. It also discusses ratio analysis, liquidity ratios, activity ratios, financial leverage ratios, profitability ratios, and per share ratios as accounting tools. Budgeting, capital budgeting, cash flow statements, break-even analysis, economic order quantity, and stock ledgers are also covered.
Fiscal Year Ended March 2017 (FY2016) Briefing on Financial ResultsRicohLease
This document summarizes the financial results of Ricoh Leasing Company for the fiscal year ending March 2017. Some key highlights include:
- Net sales reached a record high of 2,911 billion yen, up 5.5% from the previous year.
- Operating profit was 173 billion yen, another record high and up 2.3% from the previous year.
- Net income was 117 billion yen, another record high and up 6.5% from the previous year.
First Quarter of Fiscal Year Ending March 2022 (FY2021) Financial HighlightsRicohLease
This document provides an overview of Ricoh Leasing Company's financial results for the first quarter of fiscal year 2022, which ended in March 2022. It discusses consolidated results including a year-over-year decrease in net sales but an increase in profit. It also reviews performance by business segment and maintains the full-year forecast. Key points include steady improvement in return on assets, growth in the rental business, and an increase in operating assets due to transaction volume and investment amount growth.
Second Quarter of Fiscal Year Ending March 2022(FY2021) Financial HighlightsRicohLease
1. The document provides an overview of Ricoh Leasing Company's financial results for the second quarter of the fiscal year ending March 2022.
2. Net sales decreased but profit increased, exceeding previous highs due to continued improvement in returns on assets and growth in the Rental Business. Operating assets increased due to growth in the Loans and Investment Business.
3. Revisions were made to forecasts for net sales and gross profit for the fiscal year, with operating profit forecast unchanged. The Leases & Finance Business grew more than initially expected but expenses rose due to COVID-19 impacts.
Third Quarter of Fiscal Year Ending March 2022 (FY2021) Financial HighlightsRicohLease
- Net sales decreased 7.3% year-over-year for Ricoh Leasing due to declines in installment sales and transaction volume from prolonged COVID and semiconductor shortages, however profit increased 17.5% from improved returns.
- Operating assets decreased slightly to 967.9 billion yen due to decreased transaction volume.
- Progress was made toward the 18.5 billion yen full-year operating profit forecast, though uncertainty remains in the market.
This document provides a valuation summary and analysis of Monsanto Company (MON). It estimates a bullish target price of $163.83 per share with a 70% probability based on discounted cash flow modeling. Key assumptions in the model include a recovery growth rate of 14% until 2018 followed by stable growth of 8.4%, a cost of equity of 17.61-17.96%, and a 30% dividend payout ratio. Historical financial data from 2008-2013 show sales, EBITDA, and EPS growth with improving margins over time.
Second Quarter of Fiscal Year Ending March 2017 Briefing on Financial ResultsRicohLease
- Ricoh Leasing reported financial results for the second quarter of FY2017, with net sales up 6.3% and net income up 9.6% year-on-year. Operating income increased 5.3% due to higher gross margins and financial income, despite an increase in allowance for doubtful accounts.
- For the full FY2017 forecast, the company expects net sales to rise 3.3% with net income growth of 4.1%. While transaction volumes are projected to increase for most products and services, overall growth is seen slowing from the medium-term targets.
- Key factors influencing the financial outlook include a deteriorating business environment amid slowing corporate earnings, as well as decreases in lease renewals
Curtiss-Wright reported first quarter 2017 financial results with earnings per share ahead of expectations. Total sales increased 4% overall and 3% organically compared to the first quarter of 2016. Operating margins were 10.9% excluding dilution from recent acquisitions. Defense sales grew 5% overall and commercial markets grew 3% organically. Curtiss-Wright affirmed full-year 2017 guidance for sales growth of 3-5% and earnings per share growth of 5-7%.
Cadila Healthcare is an Indian pharmaceutical company headquartered in Ahmedabad, Gujarat. It has 11 plants located across India and is the fourth largest pharmaceutical company in India. While Cadila's revenue grew to INR 54.7 billion in 2015, its profitability ratios have declined in recent years based on an analysis of its 2016-2017 financial statements. Most of Cadila's key ratios related to liquidity, leverage, profitability and returns have decreased, suggesting the company has not been performing efficiently. As a result, based on its current financial condition, Cadila cannot be recommended as a good investment opportunity.
Presentation Material for 1Q / Mar. 2020RicohLease
This document summarizes the financial highlights of Ricoh Leasing Company for the first quarter of the fiscal year ending March 2020. Key points include:
- Net sales, gross profit, operating profit, ordinary profit, and net income all reached record highs for the quarter and continued to increase year-over-year.
- Operating assets also reached a record high, increasing to 936.0 billion yen for the quarter.
- Transaction volumes increased across key business segments such as leases and installment sales, collection agency services, and factoring services for healthcare.
- Financial metrics like the default rate and financial expenses ratio improved compared to the same quarter last year.
Fiscal Year Ended March 2021 (FY2020)Financial HighlightsRicohLease
- Ricoh Leasing Company reported financial results for the fiscal year ended March 2021, with net sales decreasing 1.8% but profit increasing 11.4% compared to the previous fiscal year.
- Operating assets decreased slightly due to securitization of lease receivables but increased when excluding this effect.
- For the current fiscal year ending March 2022, the company forecasts a decrease in net sales but an increase in profit, with operating profit rising for the second consecutive year.
Voya Financial held an investor presentation on May 7, 2014 to discuss its first quarter 2014 results. The presentation highlighted that Voya achieved higher expected capital generation, repurchased $265 million in shares, and rebranded from ING U.S. to Voya Financial in April 2014. Voya's ongoing business adjusted operating return on equity remained steady at 10.3% for both the first quarter and trailing twelve months of 2014, consistent with its full year 2013 results and on track to meet its 2016 target. Retirement solutions continued its re-pricing strategy in tax-exempt markets and leveraged a rebuilt sales force.
This document contains the financial statements of Asian Paints Company for the years ended March 31, 2013 and March 31, 2012. It includes the statement of profit and loss, balance sheet, key financial ratios and common size statements for both years. The company saw increases in total revenue, net profit, assets and liabilities from 2012 to 2013. Revenue increased by 14.71% to Rs. 9,990.04 crores and net profit increased by 9.55% to Rs. 1,050 crores. Total assets grew by 17.77% to Rs. 5,648.28 crores over the period.
Meaning
Purpose or utility of common size statement
Common Size Balance sheet
Purpose of common size balance sheet
Format of common size balance sheet
Illustration
Exercise
Common Size Statement of profit & loss
Purpose of common size statement of profit & loss
Format of common size statement of profit & loss
Illustration
Exercise
- Maxim Integrated updated its business model to target revenue growth of 50% above market levels annually through focus on key markets like automotive, industrial, and data centers.
- The financial model update includes targets of 67-70% gross margin, operating expenses growing at less than half the revenue rate, and over 35% free cash flow margin.
- Maxim expects long term growth above market levels in automotive and industrial, and at market levels for communications and data centers. The updates aim to drive higher profitability and return more cash to shareholders.
Fiscal Year Ended March 2020 (FY2019) Financial Highlights RicohLease
The document summarizes the financial results for Ricoh Leasing Company for the fiscal year ending March 2020. Key points include:
- Net sales and gross profit reached record highs, but operating profit and net income decreased due to an increase in allowance for doubtful accounts.
- The transaction volume of leases and installment sales as well as loans increased. Investments in new businesses also expanded steadily.
- Operating assets increased by 97.2 billion yen due to acquiring new contracts steadily, while the default rate remained low.
- Hyundai Commercial, Inc. and Subsidiaries consolidated financial statements for years ending December 31, 2014 and 2013 are presented.
- The consolidated statements include the consolidated statements of financial position, comprehensive income, changes in equity, and cash flows for the periods.
- An independent auditor's report is also included which provides an unmodified opinion that the consolidated financial statements present fairly the financial position and financial performance of Hyundai Commercial, Inc. and Subsidiaries for the periods ended December 31, 2014 and 2013 in accordance with Korean International Financial Reporting Standards.
- CIT reported record quarterly and annual results for Q4 2006 and full year 2006, with EPS growth of 16% and 15% respectively excluding noteworthy items.
- Key drivers were strong loan and lease origination volume of $11.6 billion in Q4 2006, up 20% from prior year, leading to higher other revenue from gains on receivable sales and syndications.
- Credit quality remained solid across segments despite some increases in consumer metrics, and full year net charge-offs declined.
- Expenses increased due to investments in sales force and origination platforms, but efficiency ratio improved slightly.
- As a result, CIT increased 2007 EPS guidance to $5.40
The document recommends buying shares of Busan City Gas (BCG) based on the following points:
1. BCG has a monopoly on natural gas distribution in Busan, Korea, generating predictable cash flows. However, its stock price fell due to a one-time earnings decline and now offers upside.
2. BCG's intrinsic value exceeds its stock price, which fails to account for undervalued real estate assets.
3. The majority owner of BCG may fully acquire the company, unlocking its true value for shareholders.
Fixed Capital Assessment PowerPoint Presentation Slides SlideTeam
Presenting this set of slides with name - Fixed Capital Assessment PowerPoint Presentation Slides. Keep your audience glued to their seats with professionally designed PPT slides. This deck comprises of total of thirtynine slides. It has PPT templates with creative visuals and well researched content. Not just this, our PowerPoint professionals have crafted this deck with appropriate diagrams, layouts, icons, graphs, charts and more. This content ready presentation deck is fully editable. Just click the DOWNLOAD button below. Change the colour, text and font size. You can also modify the content as per your need. Get access to this well crafted complete deck presentation and leave your audience stunned.
Fiscal Year-ending March 2015 Briefing on the Results for the Second QuarterRicohLease
This document provides an overview of Ricoh Leasing Company's financial performance for the second quarter of fiscal year 2015, ending March 2015. Some key points include:
- Consolidated revenue increased 6.3% year-over-year to 1,284 billion yen.
- Operating income rose 2.5% to 82 billion yen, with gross profit up 4.1% and selling/admin expenses increasing 6%.
- Transaction volumes increased across all business segments, with the lease/installment business up 4.7% to 1,572 billion yen.
- Financial forecasts for the full fiscal year were revised upwards with revenue projected to increase 6.3% to 2,600 billion yen
This document provides financial and operational results for AT&T's wireless segment. Some key highlights include:
- Wireless operating revenues for 2008 were $49.3 billion, up 15.6% from 2007. Segment income was $10.8 billion for 2008, up 58.5% from 2007.
- As of December 31, 2008, AT&T had 77 million wireless customers, up 10.4% from a year earlier. Postpaid subscribers totaled 60.1 million in Q4 2008.
- Wireless data revenues in Q4 2008 were $3.1 billion, up 51.7% year-over-year, reflecting increased data usage and adoption of smartphones.
This document provides financial and operational results for AT&T across several business segments. Key highlights include:
- Wireless operating revenues increased 6% to $49.3 billion in 2008, with segment income increasing 58% to $10.8 billion. The number of wireless customers grew 5% to over 77 million.
- Wireline operating revenues declined 2% to $69.9 billion while segment income declined 7% to $11.2 billion in 2008 compared to 2007.
- Advertising & Publishing operating revenues declined 6% to $5.5 billion in 2008, with segment income declining 20% to $1.7 billion.
First Quarter of Fiscal Year Ending March 2022 (FY2021) Financial HighlightsRicohLease
This document provides an overview of Ricoh Leasing Company's financial results for the first quarter of fiscal year 2022, which ended in March 2022. It discusses consolidated results including a year-over-year decrease in net sales but an increase in profit. It also reviews performance by business segment and maintains the full-year forecast. Key points include steady improvement in return on assets, growth in the rental business, and an increase in operating assets due to transaction volume and investment amount growth.
Second Quarter of Fiscal Year Ending March 2022(FY2021) Financial HighlightsRicohLease
1. The document provides an overview of Ricoh Leasing Company's financial results for the second quarter of the fiscal year ending March 2022.
2. Net sales decreased but profit increased, exceeding previous highs due to continued improvement in returns on assets and growth in the Rental Business. Operating assets increased due to growth in the Loans and Investment Business.
3. Revisions were made to forecasts for net sales and gross profit for the fiscal year, with operating profit forecast unchanged. The Leases & Finance Business grew more than initially expected but expenses rose due to COVID-19 impacts.
Third Quarter of Fiscal Year Ending March 2022 (FY2021) Financial HighlightsRicohLease
- Net sales decreased 7.3% year-over-year for Ricoh Leasing due to declines in installment sales and transaction volume from prolonged COVID and semiconductor shortages, however profit increased 17.5% from improved returns.
- Operating assets decreased slightly to 967.9 billion yen due to decreased transaction volume.
- Progress was made toward the 18.5 billion yen full-year operating profit forecast, though uncertainty remains in the market.
This document provides a valuation summary and analysis of Monsanto Company (MON). It estimates a bullish target price of $163.83 per share with a 70% probability based on discounted cash flow modeling. Key assumptions in the model include a recovery growth rate of 14% until 2018 followed by stable growth of 8.4%, a cost of equity of 17.61-17.96%, and a 30% dividend payout ratio. Historical financial data from 2008-2013 show sales, EBITDA, and EPS growth with improving margins over time.
Second Quarter of Fiscal Year Ending March 2017 Briefing on Financial ResultsRicohLease
- Ricoh Leasing reported financial results for the second quarter of FY2017, with net sales up 6.3% and net income up 9.6% year-on-year. Operating income increased 5.3% due to higher gross margins and financial income, despite an increase in allowance for doubtful accounts.
- For the full FY2017 forecast, the company expects net sales to rise 3.3% with net income growth of 4.1%. While transaction volumes are projected to increase for most products and services, overall growth is seen slowing from the medium-term targets.
- Key factors influencing the financial outlook include a deteriorating business environment amid slowing corporate earnings, as well as decreases in lease renewals
Curtiss-Wright reported first quarter 2017 financial results with earnings per share ahead of expectations. Total sales increased 4% overall and 3% organically compared to the first quarter of 2016. Operating margins were 10.9% excluding dilution from recent acquisitions. Defense sales grew 5% overall and commercial markets grew 3% organically. Curtiss-Wright affirmed full-year 2017 guidance for sales growth of 3-5% and earnings per share growth of 5-7%.
Cadila Healthcare is an Indian pharmaceutical company headquartered in Ahmedabad, Gujarat. It has 11 plants located across India and is the fourth largest pharmaceutical company in India. While Cadila's revenue grew to INR 54.7 billion in 2015, its profitability ratios have declined in recent years based on an analysis of its 2016-2017 financial statements. Most of Cadila's key ratios related to liquidity, leverage, profitability and returns have decreased, suggesting the company has not been performing efficiently. As a result, based on its current financial condition, Cadila cannot be recommended as a good investment opportunity.
Presentation Material for 1Q / Mar. 2020RicohLease
This document summarizes the financial highlights of Ricoh Leasing Company for the first quarter of the fiscal year ending March 2020. Key points include:
- Net sales, gross profit, operating profit, ordinary profit, and net income all reached record highs for the quarter and continued to increase year-over-year.
- Operating assets also reached a record high, increasing to 936.0 billion yen for the quarter.
- Transaction volumes increased across key business segments such as leases and installment sales, collection agency services, and factoring services for healthcare.
- Financial metrics like the default rate and financial expenses ratio improved compared to the same quarter last year.
Fiscal Year Ended March 2021 (FY2020)Financial HighlightsRicohLease
- Ricoh Leasing Company reported financial results for the fiscal year ended March 2021, with net sales decreasing 1.8% but profit increasing 11.4% compared to the previous fiscal year.
- Operating assets decreased slightly due to securitization of lease receivables but increased when excluding this effect.
- For the current fiscal year ending March 2022, the company forecasts a decrease in net sales but an increase in profit, with operating profit rising for the second consecutive year.
Voya Financial held an investor presentation on May 7, 2014 to discuss its first quarter 2014 results. The presentation highlighted that Voya achieved higher expected capital generation, repurchased $265 million in shares, and rebranded from ING U.S. to Voya Financial in April 2014. Voya's ongoing business adjusted operating return on equity remained steady at 10.3% for both the first quarter and trailing twelve months of 2014, consistent with its full year 2013 results and on track to meet its 2016 target. Retirement solutions continued its re-pricing strategy in tax-exempt markets and leveraged a rebuilt sales force.
This document contains the financial statements of Asian Paints Company for the years ended March 31, 2013 and March 31, 2012. It includes the statement of profit and loss, balance sheet, key financial ratios and common size statements for both years. The company saw increases in total revenue, net profit, assets and liabilities from 2012 to 2013. Revenue increased by 14.71% to Rs. 9,990.04 crores and net profit increased by 9.55% to Rs. 1,050 crores. Total assets grew by 17.77% to Rs. 5,648.28 crores over the period.
Meaning
Purpose or utility of common size statement
Common Size Balance sheet
Purpose of common size balance sheet
Format of common size balance sheet
Illustration
Exercise
Common Size Statement of profit & loss
Purpose of common size statement of profit & loss
Format of common size statement of profit & loss
Illustration
Exercise
- Maxim Integrated updated its business model to target revenue growth of 50% above market levels annually through focus on key markets like automotive, industrial, and data centers.
- The financial model update includes targets of 67-70% gross margin, operating expenses growing at less than half the revenue rate, and over 35% free cash flow margin.
- Maxim expects long term growth above market levels in automotive and industrial, and at market levels for communications and data centers. The updates aim to drive higher profitability and return more cash to shareholders.
Fiscal Year Ended March 2020 (FY2019) Financial Highlights RicohLease
The document summarizes the financial results for Ricoh Leasing Company for the fiscal year ending March 2020. Key points include:
- Net sales and gross profit reached record highs, but operating profit and net income decreased due to an increase in allowance for doubtful accounts.
- The transaction volume of leases and installment sales as well as loans increased. Investments in new businesses also expanded steadily.
- Operating assets increased by 97.2 billion yen due to acquiring new contracts steadily, while the default rate remained low.
- Hyundai Commercial, Inc. and Subsidiaries consolidated financial statements for years ending December 31, 2014 and 2013 are presented.
- The consolidated statements include the consolidated statements of financial position, comprehensive income, changes in equity, and cash flows for the periods.
- An independent auditor's report is also included which provides an unmodified opinion that the consolidated financial statements present fairly the financial position and financial performance of Hyundai Commercial, Inc. and Subsidiaries for the periods ended December 31, 2014 and 2013 in accordance with Korean International Financial Reporting Standards.
- CIT reported record quarterly and annual results for Q4 2006 and full year 2006, with EPS growth of 16% and 15% respectively excluding noteworthy items.
- Key drivers were strong loan and lease origination volume of $11.6 billion in Q4 2006, up 20% from prior year, leading to higher other revenue from gains on receivable sales and syndications.
- Credit quality remained solid across segments despite some increases in consumer metrics, and full year net charge-offs declined.
- Expenses increased due to investments in sales force and origination platforms, but efficiency ratio improved slightly.
- As a result, CIT increased 2007 EPS guidance to $5.40
The document recommends buying shares of Busan City Gas (BCG) based on the following points:
1. BCG has a monopoly on natural gas distribution in Busan, Korea, generating predictable cash flows. However, its stock price fell due to a one-time earnings decline and now offers upside.
2. BCG's intrinsic value exceeds its stock price, which fails to account for undervalued real estate assets.
3. The majority owner of BCG may fully acquire the company, unlocking its true value for shareholders.
Fixed Capital Assessment PowerPoint Presentation Slides SlideTeam
Presenting this set of slides with name - Fixed Capital Assessment PowerPoint Presentation Slides. Keep your audience glued to their seats with professionally designed PPT slides. This deck comprises of total of thirtynine slides. It has PPT templates with creative visuals and well researched content. Not just this, our PowerPoint professionals have crafted this deck with appropriate diagrams, layouts, icons, graphs, charts and more. This content ready presentation deck is fully editable. Just click the DOWNLOAD button below. Change the colour, text and font size. You can also modify the content as per your need. Get access to this well crafted complete deck presentation and leave your audience stunned.
Fiscal Year-ending March 2015 Briefing on the Results for the Second QuarterRicohLease
This document provides an overview of Ricoh Leasing Company's financial performance for the second quarter of fiscal year 2015, ending March 2015. Some key points include:
- Consolidated revenue increased 6.3% year-over-year to 1,284 billion yen.
- Operating income rose 2.5% to 82 billion yen, with gross profit up 4.1% and selling/admin expenses increasing 6%.
- Transaction volumes increased across all business segments, with the lease/installment business up 4.7% to 1,572 billion yen.
- Financial forecasts for the full fiscal year were revised upwards with revenue projected to increase 6.3% to 2,600 billion yen
This document provides financial and operational results for AT&T's wireless segment. Some key highlights include:
- Wireless operating revenues for 2008 were $49.3 billion, up 15.6% from 2007. Segment income was $10.8 billion for 2008, up 58.5% from 2007.
- As of December 31, 2008, AT&T had 77 million wireless customers, up 10.4% from a year earlier. Postpaid subscribers totaled 60.1 million in Q4 2008.
- Wireless data revenues in Q4 2008 were $3.1 billion, up 51.7% year-over-year, reflecting increased data usage and adoption of smartphones.
This document provides financial and operational results for AT&T across several business segments. Key highlights include:
- Wireless operating revenues increased 6% to $49.3 billion in 2008, with segment income increasing 58% to $10.8 billion. The number of wireless customers grew 5% to over 77 million.
- Wireline operating revenues declined 2% to $69.9 billion while segment income declined 7% to $11.2 billion in 2008 compared to 2007.
- Advertising & Publishing operating revenues declined 6% to $5.5 billion in 2008, with segment income declining 20% to $1.7 billion.
Revenue and profits increased for the company in the third quarter and first nine months of 2015 compared to the same periods in 2014. Revenue grew 13% in Q3 2015 and 15% in the first nine months, while profits grew 26% and 37% respectively. The number of customers and accounts also increased by over 55,000 and 79,000 respectively over the past 12 months. Looking forward, the company plans to continue executing its growth strategy, focus on improving the user experience, and further develop lending products.
- WonderApp Ltd. is a company that provides various app-related services and products through four main offerings. It has created a 5-year financial forecast model to project its income statement, cash flows, balance sheet, funding sources and uses of funds.
- In the first 12 months, WonderApp expects to generate $638k in revenue and require $582k in total funding from a mix of equity and debt sources. It plans to use the funds for operating expenses, capital expenditures, payroll and financing costs.
- Over the 5-year forecast period, WonderApp projects its revenue to grow from $623k to $6.1m while its net profit is expected to increase from a $32k loss
Tech Mahindra reported a weak Q1FY16 outlook, with marginal revenue decline and sustained pressure on margins expected. The company anticipates challenges in its communication business to persist through FY16, though its enterprise business is expected to grow in line with industry averages. Analysts revised down their estimates for FY16 and FY17 but maintained a 'buy' rating, expecting improvement in the second half of FY16. Margins are forecast to bottom out in the first half before showing gains from cost optimization and currency benefits in the latter half of the year.
This document contains the financial statements of UAC of Nigeria PLC for the year ended 31 December 2017. Some key highlights include:
- Revenue increased 8% to N89.2 billion for the group and decreased 9% to N826.5 million for the company.
- Operating profit decreased 19% to N7 billion for the group and increased 3% to N1.55 billion for the company.
- Profit for the year decreased 83% to N962.8 million for the group and increased 17% to N3.08 billion for the company.
- Total equity decreased 4% to N73.1 billion for the group and increased 5% to N23.45 billion for
- Net sales and operating income increased 20% to Rs. 5,125 crores from Rs. 4,270 crores previously. Operating profit increased 86% to Rs. 1,154 crores from Rs. 621 crores.
- Profit after tax for the current year was Rs. 775 crores, a growth of 114% from Rs. 362 crores in the previous year.
- Exceptional items for the current year included a write back of Rs. 25.46 crores from the diminution in value of investments in a subsidiary.
Income statements and balance sheets follow for The New York Times C.pdfjillisacebi75827
Income statements and balance sheets follow for The New York Times Company. Refer to these
financial statements to answer the requirements.
The New York Times Company
Consolidated Statements of Income
Fiscal year ended
(in thousands)
Dec. 29, 2016
Dec. 30, 2015
Revenues
Circulation
$ 880,543
$ 851,790
Advertising
580,732
638,709
Other
94,067
88,716
Total revenues
1,555,342
1,579,215
Production costs
Wages and benefits
363,051
354,516
Raw materials
72,325
77,176
Other
192,728
186,120
Total production costs
628,104
617,812
Selling, general and administrative costs
721,083
713,837
Depreciation and amortization
61,723
61,597
Total operating costs
1,410,910
1,393,246
Restructuring charge
14,804
0
Multiemployer pension plan withdrawal expense
6,730
9,055
Pension settlement charges
21,294
40,329
Early termination charge
0
0
Operating profit
101,604
136,585
Loss from joint ventures
(36,273)
(783)
Interest expense, net
34,805
39,050
Income from continuing operations before income taxes
30,526
96,752
Income tax expense/(benefit)
4,421
33,910
Income from continuing operations
26,105
62,842
Loss from discontinued operations, net of income taxes
(2,273)
0
Net income
23,832
62,842
Net loss attributable to the noncontrolling interest
5,236
404
Net income attributable to The New York Times Company common stockholders
$29,068
$63,246
Continued next page
The New York Times Company
Consolidated Balance Sheets
As of
(in thousands)
Dec. 29, 2016
Dec. 30, 2015
Cash and cash equivalents
$ 100,692
$ 105,776
Short-term investments
449,535
507,639
Accounts receivable, net
197,355
207,180
Prepaid assets
15,948
19,430
Other current assets
32,648
22,507
Total current assets
796,178
862,532
Long-term marketable securities
187,299
291,136
Investments in joint ventures
15,614
22,815
Property plant and equipment, net
596,743
632,439
Goodwill
134,517
109,085
Deferred income taxes
301,342
309,142
Miscellaneous assets
153,702
190,541
Total assets
$2,185,395
$2,417,690
Accounts payable
$ 104,463
$ 96,082
Accrued payroll and other related liabilities
96,463
98,256
Unexpired subscriptions
66,686
60,184
Current portion of long-term debt
0
188,377
Accrued expenses and other
131,125
120,686
Total current liabilities
398,737
563,585
Long-term debt and capital lease obligations
246,978
242,851
Pension benefits obligation
558,790
627,697
Postretirement benefits obligation
57,999
62,879
Other
78,647
92,223
Total other liabilities
942,414
1,025,650
Stockholders’ equity
Common stock of $0.10 par value
Class A common stock
16,921
16,826
Class B convertible stock
82
82
Additional paid-in capital
149,928
146,348
Retained earnings
1,331,911
1,328,744
Common stock held in treasury, at cost
(171,211)
(156,155)
Accumulated other comprehensive loss, net of tax
(479,816)
(509,094)
Total New York Times Company stockholders’ equity
847,815
826,751
Noncontrolling interest
(3,571)
1,704
Total stockholders’ equity
844,244
828,455
Total liabilities and stockholders’ equity
$2,185,395.
$2,185,395
d. Compu.
This document contains financial statements and analysis for a company over several years:
1) Income statements, balance sheets, cash flow statements and key financial ratios are presented for years 2018-2025 with actual data for 2018-2021 and estimates for 2022-2025.
2) The income statement shows steady revenue growth of 10% per year along with trends in expenses, profits and tax rates.
3) The balance sheet outlines asset and liability accounts with growth assumptions. Major assets include property/equipment, investments and current assets.
4) Cash flow statements show cash from operations exceeding cash used in investing and financing activities, resulting in positive cash flow overall.
Sihuan (460 HK) Auditor Disclaimer of Opinionasianextractor
The document is Sihuan Pharmaceutical Holdings Group's announcement of its annual results for the year ended 31 December 2014. It summarizes that for 2014, the company's profit attributable to owners increased 30.1% to RMB1,671.3 million with revenue up 19.2% to RMB3,084.2 million. Basic earnings per share rose 30% to approximately RMB16.1 cents. A final cash dividend of RMB1.3 cents per share was recommended.
This document provides condensed consolidated interim financial statements for Hyundai Capital Services, Inc. and its subsidiaries for the period ended June 30, 2016. It includes statements of financial position, comprehensive income, changes in equity, and cash flows. Key information includes total assets of KRW 25.5 trillion as of June 30, 2016, profit for the period of KRW 227.5 billion, and total equity of KRW 3.7 trillion. The independent auditor's review report concludes the financial statements are prepared in accordance with relevant accounting standards.
This document analyzes and compares the financial performance of Coca-Cola and PepsiCo over three years from 2011-2013. It includes common-size income statements and balance sheets, comparative income statements and balance sheets, calculated financial ratios, and bond price analysis for both companies. The analysis shows that while both companies experienced revenue growth over the period, Coca-Cola had higher net income and stronger liquidity and return on asset ratios compared to PepsiCo.
- NOW Telecom held a press conference to discuss their All Text Network, broadband business, and financial report.
- For the All Text Network, they expect to capture 2.9 million subscribers and generate PHP1.6 billion in revenue and PHP1.1 billion in EBITDA by the 5th year.
- For broadband, they expect 85,000 subscribers generating PHP8.36 billion in revenue and PHP3.45 billion in EBITDA by the 5th year.
- NOW Corporation's financial report showed a net income loss of PHP87.2 million in 2013, an improvement from a PHP138.1 million loss in 2012, with total revenues increasing 59% to PHP79.3
This document contains ratio analyses for the years 2015 and 2014. Ratio analyses are used to evaluate a firm's financial performance in key areas like short-term solvency, debt management, asset management, profitability, and market value. The document provides calculations for liquidity ratios, debt ratios, profitability ratios, and marketability ratios for both years. These ratios indicate the company's ability to meet short-term obligations, use of debt financing, operating efficiency, and stock valuation.
Financial InformationIn this worksheet, you will recreate both theChereCheek752
Financial InformationIn this worksheet, you will recreate both the company's balance sheet and income statement for the past 3 yearsDon't forget to note your references for your data in the last TABMicrosoftMicrosoftIncome StatementBalance SheetFor the Years ended 2018 through 2020For the Years ended 2018 through 2020(Amounts in millions)(Amounts in millions)Fiscal Year:202020192018Fiscal Year:202020192018Total Revenue143,015125,843110,360 Cash, Cash Equivalents and Short Term Investments136,527133,819133,768Cost of Revenue46,07842,91038,353 Inventories1,8952,0632,662Gross Profit96,93782,93372,007 Trade and Other Receivables, Current32,01129,52426,481 Selling, General and Administrative Expenses24,70923,09822,223 Other Current Assets11,48210,1466,751 Research and Development Expenses19,26916,87614,726 Total Current Assets181,915175,552169,662Operating Income/Expenses43,97839,97436,949 Deferred Costs/Assets, CurrentTotal Operating Profit/Loss52,95942,95935,058 Total Non-Current Assets119,396111,00489,186Non-Operating Income/Expenses, Total777291,416 Net Property, Plant and Equipment52,90443,85636,146Pretax Income53,03643,68836,474 Net Intangible Assets50,38949,77643,736Provision for Income Tax8,7554,44819,903 Total Long Term Investments2,9652,6491,862Net Income from Continuing Operations44,28139,24016,571 Other Non-Current Assets13,13814,7237,442Total Assets301,311286,556258,848 Financial Liabilities, Current3,7495,5163,998 Provisions, Current7,8746,8306,103 Deferred Liabilities, Current36,00032,67628,905 Other Current Liabilities10,0279,3518,744 Total Current Liabilities72,31069,42058,488 Long Term Debt59,57866,66272,242 Capital Lease Obligations, Non-Current7,6716,1885,568 Tax Liabilities, Non-Current204233541 Deferred Income/Customer Advances/Billings in Excess of Cost, Non-Current3,1804,5303,815 Payables and Accrued Expenses, Non-Current29,43229,61230,265 Other Non-Current Liabilities10,6327,5815,211 Total Non-Current Liabilities110,697114,806117,642Total Liabilities183,007184,226176,130 Equity Attributable to Parent Stockholders118,304102,33082,718 Paid in Capital80,55278,52071,223 Retained Earnings/Accumulated Deficit34,56624,15013,682 Reserves/Accumulated Comprehensive Income/Losses3,186(340)(2,187)Total Equity118,304102,33082,718Total Equity and Liabiltiies301,311286,556258,848
3-Horizontal Analysis ISMicrosoftIncome StatementFor the Years ended 2018 through 2020(Amounts in millions)2019201820202019$ Change% Change20192018$ Change% Change2082018$ Change% ChangeTotal Revenue143,015125,84317,17213.6%125,843110,36015,48314.0%110,360110,360- 00.0%Cost of Revenue46,07842,9103,1687.4%42,91038,3534,55711.9%38,35338,353- 00.0%Gross Profit96,93782,93314,00416.9%82,93372,00710,92615.2%72,00772,007- 00.0% Selling, General and Administrative Expenses24, ...
Revenue and profits increased substantially in the first half of 2015 compared to the same period last year. Revenue rose 17% to SEK 630 million and profit after tax increased 42% to SEK 193.9 million. The number of customer accounts also grew significantly, rising 14% over the past 12 months to 588,500. Nordnet saw strong growth across its markets in Sweden, Norway, Denmark, and Finland and will continue focusing on product development and an enhanced user experience to further its strategic growth.
This document provides condensed consolidated interim financial statements for Hyundai Capital Services, Inc. and its subsidiaries for the period ended June 30, 2017. It includes statements of financial position, comprehensive income, changes in equity, and cash flows, as well as notes to the financial statements. An independent auditor's review report indicates the financial statements were prepared in accordance with relevant accounting standards and that nothing came to the auditor's attention to cause belief that the statements are not fairly presented.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
2. 13-2
Name of reporting entity Saudi Telecom Co.
Company symbol code| ISIN code 7010 | SA0007879543
Sector| Industry group Telecommunication Services
Period covered by financial statements Annual
Reporting period start date 2017-01-01
Reporting period end date 2017-12-31
Description of presentation currency Saudi Arabia, Riyals
Level of rounding used in financial statements Thousands
Method of presentation of statement of
financial position Current, non-current
Company and Report Information
3. 13-3
Start Date 2017-01-01 2016-01-01
End Date 2017-12-31 2016-12-31
Statement of income [abstract]
Profit (loss) [abstract]
Continuing operations [abstract]
Operating profit (loss) [abstract]
Operating income [abstract]
Gross profit (loss) [abstract]
Revenue 50,746,675 52,673,659
Cost of sales 21,255,477 23,985,878
Gross profit (loss) 29,491,198 28,687,781
Total operating income 29,491,198 28,687,781
Operating expenses [abstract]
Selling and distribution expenses 5,726,280 6,327,144
General and administrative expenses 4,471,573 4,331,428
Other operating expenses 8,208,360 8,078,118
Total operating expenses 18,406,213 18,736,690
Operating profit (loss) 11,084,985 9,951,091
Finance costs 354,199 379,062
Finance income 584,681 722,732
Share of profit (loss) of joint ventures and associates 308,384 116,246
Other income (expenses), net -533,016 -534,378
Profit (loss) before zakat and income tax from continuing operations 11,090,835 9,876,629
Zakat expenses on continuing operations for period 720,700 750,797
Profit (loss) for period from continuing operations 10,370,135 9,125,832
Profit (loss) for period 10,370,135 9,125,832
Profit (loss), attributable to [abstract]
Profit (loss), attributable to equity holders of parent company 10,133,224 8,898,857
Profit (loss), attributable to non-controlling interests 236,911 226,975
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations 5.07 4.45
Total basic earnings (loss) per share 5.07 4.45
Weighted average number of equity shares outstanding 2000000 2000000
Share closing price at the last trading day of financial year (in numbers) 68.6 72.55
Statement of income
4. 13-4
Start Date 2017-01-01 2016-01-01
End Date 2017-12-31 2016-12-31
Revenue 100.0% 100.0%
Cost of sales 41.9% 45.5%
Gross profit (loss) 58.1% 54.5%
Total operating income 58.1% 54.5%
Operating expenses [abstract]
Selling and distribution expenses 11.3% 12.0%
General and administrative expenses 8.8% 8.2%
Other operating expenses 16.2% 15.3%
Total operating expenses 36.3% 35.6%
Operating profit (loss) 21.8% 18.9%
Finance costs 0.7% 0.7%
Finance income 1.2% 1.4%
Share of profit (loss) of joint ventures and associates 0.6% 0.2%
Other income (expenses), net -1.1% -1.0%
Profit (loss) before zakat and income tax from continuing operations 21.9% 18.8%
Zakat expenses on continuing operations for period 1.4% 1.4%
Profit (loss) for period from continuing operations 20.4% 17.3%
Profit (loss) for period 20.4% 17.3%
Profit (loss), attributable to [abstract]
Profit (loss), attributable to equity holders of parent company 20.0% 16.9%
Profit (loss), attributable to non-controlling interests 0.5% 0.4%
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations 0.0% 0.0%
Total basic earnings (loss) per share 0.0% 0.0%
Weighted average number of equity shares outstanding 3.9% 3.8%
Share closing price at the last trading day of financial year (in numbers) 0.0% 0.0%
Income Stat. component percentages (Vertical):
5. 13-5
Analysis:
• Net income (profit)in 2017 increased about 13 % (800M) from
2016, although revenues of 2017 decreased 3.5% from 2016.
• Company working in reducing cost of sales and operating
expenses, as they are the highest factors affecting the net
income ( clear comparing 2016 and 2017 )
6. 13-6
Income Stat. component percentages (Horizontal):
Start Date 2017-01-01 2016-01-01
End Date 2017-12-31 2016-12-31
Statement of income [abstract]
Profit (loss) [abstract]
Continuing operations [abstract]
Operating profit (loss) [abstract]
Operating income [abstract]
Gross profit (loss) [abstract]
Revenue 50,746,675 52,673,659 96.34%
Cost of sales 21,255,477 23,985,878 88.62%
Gross profit (loss) 29,491,198 28,687,781 102.80%
Total operating income 29,491,198 28,687,781 102.80%
Operating expenses [abstract]
Selling and distribution expenses 5,726,280 6,327,144 90.50%
General and administrative expenses 4,471,573 4,331,428 103.24%
Other operating expenses 8,208,360 8,078,118 101.61%
Total operating expenses 18,406,213 18,736,690 98.24%
Operating profit (loss) 11,084,985 9,951,091 111.39%
Finance costs 354,199 379,062 93.44%
Finance income 584,681 722,732 80.90%
Share of profit (loss) of joint ventures and associates 308,384 116,246 265.29%
Other income (expenses), net -533,016 -534,378 99.75%
Profit (loss) before zakat and income tax from continuing operations 11,090,835 9,876,629 112.29%
Zakat expenses on continuing operations for period 720,700 750,797 95.99%
Profit (loss) for period from continuing operations 10,370,135 9,125,832 113.63%
Profit (loss) for period 10,370,135 9,125,832 113.63%
Profit (loss), attributable to [abstract]
Profit (loss), attributable to equity holders of parent company 10,133,224 8,898,857 113.87%
Profit (loss), attributable to non-controlling interests 236,911 226,975 104.38%
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations 5.07 4.45 113.93%
Total basic earnings (loss) per share 5.07 4.45 113.93%
Weighted average number of equity shares outstanding 2000000 2000000 100.00%
Share closing price at the last trading day of financial year (in numbers) 68.6 72.55 94.56%
7. 13-7
Analysis:
• Cost of sales decreased 12% from 2016
• Selling and distribution expenses decreased by 10 % from 2016
• Zakat expenses decreased 5% from 2016 (30 M)
• As per company financial annual report, profit increase due to:
1- decreasing cost of sale accompanied with decreasing revenue
2- decreasing operating expenses ( major reduction in Selling
and distribution expenses)
3- decreasing Zakat expenses
8. 13-8
Financial Position Statement
Start Date 2017-01-01 2016-01-01
End Date 2017-12-31 2016-12-31
Statement of financial position [abstract]
Assets [abstract]
Current assets [abstract]
Bank balances and cash 2,567,044 3,631,202
Short-term deposits 14,465,364 15,004,490
Trade accounts receivable 25,549,424 19,768,149
Inventories 460,431 466,766
Other current assets 1,770,961 1,693,448
Total 44,813,224 40,564,055
Total current assets 44,813,224 40,564,055
Non-current assets [abstract]
Property, plant and equipment 39,940,616 39,418,554
Goodwill 75,612 75,612
Intangible assets other than goodwill, net 7,698,227 7,764,831
Investments in associates and joint ventures 6,927,303 6,301,641
Other non-current assets 8,657,822 7,652,195
Total non-current assets 63,299,580 61,212,833
Total assets 108,112,804 101,776,888
9. 13-9
Financial Position Statement (Cont.)
Liabilities and equity [abstract]
Liabilities [abstract]
Current liabilities [abstract]
Short term borrowings 647,763 1,867,220
Trade accounts payables 13,827,806 13,885,561
Zakat payable 1,623,423 1,460,129
Deferred revenue, current 2,872,083 2,816,841
Provisions, current 7,633,984 5,682,808
Other current liabilities 7,222,892 4,096,138
Total 33,827,951 29,808,697
Total current liabilities 33,827,951 29,808,697
Non-current liabilities [abstract]
Debt securities, term loans, borrowings and sukuks in issue 4,005,980 4,017,231
Employees' terminal benefits 3,922,769 3,775,668
Provisions, non-current 1,202,448 1,158,654
Deferred revenue, non-current 1,763,440 1,445,777
Other non-current liabilities 145,543 292,530
Total non-current liabilities 11,040,180 10,689,860
Total liabilities 44,868,131 40,498,557
Equity [abstract]
Shareholder's equity [abstract]
Share capital 20,000,000 20,000,000
Statutory Reserve 10,000,000 10,000,000
Retained earnings (accumulated losses) 34,010,412 31,877,188
Other reserves [abstract]
Miscellaneous other reserves -1,769,028 -1,935,833
Total other reserves -1,769,028 -1,935,833
Equity attributable to owners of parent 62,241,384 59,941,355
Non-controlling interests 1,003,289 1,336,976
Total equity 63,244,673 61,278,331
Total liabilities and equity 108,112,804 101,776,888
10. 13-10
Financial Position Vertical Percentages:
Start Date 2017-01-01 2016-01-01
End Date 2017-12-31 2016-12-31
Statement of financial position [abstract]
Assets [abstract]
Current assets [abstract]
Bank balances and cash
2.4% 3.6%
Short-term deposits
13.4% 14.7%
Trade accounts receivable
23.6% 19.4%
Inventories
0.4% 0.5%
Other current assets
1.6% 1.7%
Total
41.5% 39.9%
Total current assets
41.5% 39.9%
Non-current assets [abstract]
Property, plant and equipment
36.9% 38.7%
Goodwill
0.1% 0.1%
Intangible assets other than goodwill, net
7.1% 7.6%
Investments in associates and joint ventures
6.4% 6.2%
Other non-current assets
8.0% 7.5%
Total non-current assets
58.5% 60.1%
Total assets
100.0% 100.0%
11. 13-11
Financial Position Vertical Percentages (Cont.):
Liabilities and equity [abstract]
Liabilities [abstract]
Current liabilities [abstract]
Short term borrowings 0.6% 1.8%
Trade accounts payables 12.8% 13.6%
Zakat payable 1.5% 1.4%
Deferred revenue, current 2.7% 2.8%
Provisions, current 7.1% 5.6%
Other current liabilities 6.7% 4.0%
Total 31.3% 29.3%
Total current liabilities 31.3% 29.3%
Non-current liabilities [abstract]
Debt securities, term loans, borrowings and sukuks in issue 3.7% 3.9%
Employees' terminal benefits 3.6% 3.7%
Provisions, non-current 1.1% 1.1%
Deferred revenue, non-current 1.6% 1.4%
Other non-current liabilities 0.1% 0.3%
Total non-current liabilities 10.2% 10.5%
Total liabilities 41.5% 39.8%
Equity [abstract]
Shareholder's equity [abstract]
Share capital 18.5% 19.7%
Statutory Reserve 9.2% 9.8%
Retained earnings (accumulated losses) 31.5% 31.3%
Other reserves [abstract]
Miscellaneous other reserves -1.6% -1.9%
Total other reserves -1.6% -1.9%
Equity attributable to owners of parent 57.6% 58.9%
Non-controlling interests 0.9% 1.3%
Total equity 58.5% 60.2%
Total liabilities and equity 100.0% 100.0%
12. 13-12
Analysis:
• STC is in better financial position in 2017 with positive trend
• It is clear that company should work to reduce the account
receivables with better collection (from government and
government related entities).
“In Report : credit risk is limited due to the fact that the customer
base is large and unrelated”
• Liabilities increase related to increase in provisions and
government charges
13. 13-13
Financial Position Horizontal Percentages:
Start Date 2017-01-01 2016-01-01
End Date 2017-12-31 2016-12-31
Statement of financial position [abstract]
Assets [abstract]
Current assets [abstract]
Bank balances and cash 2,567,044 3,631,202 70.69%
Short-term deposits 14,465,364 15,004,490 96.41%
Trade accounts receivable 25,549,424 19,768,149 129.25%
Inventories 460,431 466,766 98.64%
Other current assets 1,770,961 1,693,448 104.58%
Total 44,813,224 40,564,055 110.48%
Total current assets 44,813,224 40,564,055 110.48%
Non-current assets [abstract]
Property, plant and equipment 39,940,616 39,418,554 101.32%
Goodwill 75,612 75,612 100.00%
Intangible assets other than goodwill, net 7,698,227 7,764,831 99.14%
Investments in associates and joint ventures 6,927,303 6,301,641 109.93%
Other non-current assets 8,657,822 7,652,195 113.14%
Total non-current assets 63,299,580 61,212,833 103.41%
Total assets 108,112,804 101,776,888 106.23%
14. 13-14
Financial Position Horizontal Percentages (Cont.):
Liabilities and equity [abstract]
Liabilities [abstract]
Current liabilities [abstract]
Short term borrowings 647,763 1,867,220 34.69%
Trade accounts payables 13,827,806 13,885,561 99.58%
Zakat payable 1,623,423 1,460,129 111.18%
Deferred revenue, current 2,872,083 2,816,841 101.96%
Provisions, current 7,633,984 5,682,808 134.33%
Other current liabilities 7,222,892 4,096,138 176.33%
Total 33,827,951 29,808,697 113.48%
Total current liabilities 33,827,951 29,808,697 113.48%
Non-current liabilities [abstract]
Debt securities, term loans, borrowings and sukuks in issue 4,005,980 4,017,231 99.72%
Employees' terminal benefits 3,922,769 3,775,668 103.90%
Provisions, non-current 1,202,448 1,158,654 103.78%
Deferred revenue, non-current 1,763,440 1,445,777 121.97%
Other non-current liabilities 145,543 292,530 49.75%
Total non-current liabilities 11,040,180 10,689,860 103.28%
Total liabilities 44,868,131 40,498,557 110.79%
Equity [abstract]
Shareholder's equity [abstract]
Share capital 20,000,000 20,000,000 100.00%
Statutory Reserve 10,000,000 10,000,000 100.00%
Retained earnings (accumulated losses) 34,010,412 31,877,188 106.69%
Other reserves [abstract]
Miscellaneous other reserves -1,769,028 -1,935,833 91.38%
Total other reserves -1,769,028 -1,935,833 91.38%
Equity attributable to owners of parent 62,241,384 59,941,355 103.84%
Non-controlling interests 1,003,289 1,336,976 75.04%
Total equity 63,244,673 61,278,331 103.21%
Total liabilities and equity 108,112,804 101,776,888 106.23%
15. 13-15
Analysis:
• STC receives certain items of property, plant and equipment
free of cost from vendors, that is why no major change in
properties.
• As total assets increased 6%, total liabilities also increased
10%, total equity increased by 3 %
16. 13-16
Test of Profitability ─ Return on Equity
Return on Equity = 16.7%
Net Income
Average Stockholders’ EquityReturn on Equity =
This measure indicates how much income was
earned for every dollar invested by the owners.
This measure indicates how much income was
earned for every dollar invested by the owners.
Industry Average = 10.53%
Conclusion: It is aligned with the increase of 13% in new profit,
Real gains!
17. 13-17
Test of Profitability ─ Return on Assets
Return on
Assets
Net Income + Interest Expense (net of tax)
Average Total Assets=
Return on
Assets
= 10.57%
Overall measure of a company’s profitability.Overall measure of a company’s profitability.
Industry Average = 7.29%
Conclusion: It is aligned with the increase of 13% in new profit,
Real gains!
18. 13-18
Test of Profitability ─ Financial Leverage
Percentage
Financial
Leverage
Return on Equity – Return on Assets=
The advantage or disadvantage that occurs as the result of
earning a return on equity that is different from the return
on assets.
The advantage or disadvantage that occurs as the result of
earning a return on equity that is different from the return
on assets.
Financial
Leverage
6.13%=
Industry Average = 3.24%
Conclusion: means high interest payments, as this increase
indication for high liabilities/debt, which negatively affect the
company's bottom-line earnings per share.
This is clarified by the provisions/government charges increase.
19. 13-19
Test of Profitability ─ Earnings per Share
(EPS)
EPS = 5.19 SAR
Earnings per share is probably the single
most widely watched financial ratio.
Earnings per share is probably the single
most widely watched financial ratio.
Net Income
Average Number of Shares
Outstanding for the Period
EPS =
Industry Average = 3.58 SAR
Conclusion: significant dividend for investors or no dividend
at all, since it prefers to plow the cash back into the business
to fund additional growth.
Monitor for several years, will help in stock decisions
20. 13-20
Test of Profitability ─ Profit Margin
= 20.44%Profit
Margin
The percentage of each sales dollar
that is income.
The percentage of each sales dollar
that is income.
Profit
Margin
Net Income
Net Sales=
Industry Average = 13.94%
Conclusion: profitability increased even with the decrease of
the revenue, which explained earlier.
21. 13-21
Tests of Liquidity ─ Cash Ratio
Cash
Ratio
Cash + Cash Equivalents
Current Liabilities
=
= 0.08
Cash
Ratio
This ratio measures the
adequacy of available cash.
This ratio measures the
adequacy of available cash.
Industry Average = 0.06
Conclusion: Cash liquidity within good margin comparing to
industry average.
22. 13-22
Tests of Liquidity ─ Current Ratio
Current
Ratio
Current Assets
Current Liabilities
=
Current
Ratio
= 1.32
This ratio measures the ability
of the company to pay current
debts as they become due.
This ratio measures the ability
of the company to pay current
debts as they become due.
Industry Average = 1.6
Conclusion: Company able to repay short term debts.
Comparing to cash ratio, it is lower, as “Property, plant and
equipment” with high percentage of assets, so will be good if
possible to reduce to convert to current assets
23. 13-23
Tests of Liquidity ─ Quick Ratio
(Acid Test)
Quick Assets
Current Liabilities=
Quick
Ratio
= 1.26
Quick
Ratio
This ratio is like the current
ratio but measures the company’s
immediate ability to pay debts.
This ratio is like the current
ratio but measures the company’s
immediate ability to pay debts.
Industry Average = 0.38
Conclusion: Company should work to reduce accounts
receivables to have a better use of these assets.
24. 13-24
Tests of Liquidity ─ Receivable Turnover
Net Credit Sales
Average Net Receivables
Receivable
Turnover
=
Receivable
Turnover
= 2.2 Times
This ratio measures how quickly a company collects its
accounts receivable.
This ratio measures how quickly a company collects its
accounts receivable.
Industry Average = 4.5
Conclusion: as mentioned earlier, company has issue with
collection, Therefore, reevaluate the company’s credit policies
to ensure timely receivable collections from its customers.
25. 13-25
Tests of Liquidity ─ Inventory Turnover
Cost of Goods Sold
Average Inventory
Inventory
Turnover
=
Inventory
Turnover
= 45.82 Times
This ratio measures how quickly the company sells
its inventory.
This ratio measures how quickly the company sells
its inventory.
Industry Average = 16.7
Conclusion: Company is efficient with moving its inventory
out of its warehouse and stores to its customers ( telecom field
usually don’t have big inventory to move )
Editor's Notes
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Clearly, net income is important, but cash flow is also critical to a company’s success. Cash flow permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners. Some Wall Street analysts go so far as to say “cash flow is king.” Both managers and analysts need to understand the various sources and uses of cash that are associated with business activity. The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing.
The statement of cash flows focuses attention on a firm’s ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing. Positive cash flows permit a company to take advantage of market opportunities, pay dividends to owners, expand its operations, and replace needed assets. Wall Street analysts consider cash flow an important indicator of a company’s financial health.
Return on equity measures how well the company employed the owners’ investments to earn income. This ratio is calculated by dividing net income by average stockholders’ equity.
Home Depot’s 2009 income is $2,260 million. Ending stockholders’ equity for 2009 is $17,777 and ending owners’ equity for 2008 is $17,714. When the income is divided by the average stockholders’ equity, we see that the return on equity at Home Depot for 2009 is 12.7 percent.
Return on total assets measures how well assets have been employed by the business. To calculate this ratio we divide net income plus interest expense (net of tax) by the average total assets for the period. Because creditors provide financing for a portion of the assets, we add interest expense to income in the numerator of the ratio.
Home Depot earned a return on its total assets of 6.3 percent. Please spend a few minutes going over the calculation of this ratio, especially the interest expense computation.
Financial leverage is the advantage or disadvantage that occurs as the result of earning a return on equity that is different from the return on assets.
Home Depot has positive financial leverage since the return on equity is higher than the return on assets. Positive financial leverage indicates that Home Depot has borrowed money at a low rate of interest and employed the borrowed funds at a higher rate of return.
Earnings per share is equal to net income less preferred stock dividends divided by the weighted-average number of common shares outstanding. The numerator of the equation is sometimes referred to as income available to common shareholders. Earnings per share is one of the most widely quoted financial ratios. It is a measure of the company’s ability to produce income for each common share outstanding.
Home Depot’s earnings per share for 2009 is $1.34. Home Depot has no preferred stock dividends to subtract from income in the numerator. The average number of shares used in this computation is based on the beginning and ending number of shares for the year rather than the weighted-average number of shares reported in Home Depot’s income statement.
Profit margin tells us how effective the company is at producing bottom line net income. The ratio is determined by dividing net income by net sales.
At Home Depot, after all expenses and taxes have been paid, the company was able to produce a profit margin of 3.2 percent in 2009.
Liquidity refers to a company’s ability to meet its currently maturing debts. Tests of liquidity focus on the relationship between current assets and current liabilities. The cash ratio is a measure of the adequacy of available cash to pay current liabilities. We compute the cash ratio by dividing the sum of cash and cash equivalents by current liabilities.
At the 2009 balance sheet date, Home Depot’s cash ratio is 0.05, meaning Home Depot has slightly less than 5 cents in cash on hand for each dollar of current liabilities. While this number might seem alarming, Home Depot generates large amounts of cash from operations that will be available before cash payments are due. Managing cash flow is extremely important. Certainly the company must have sufficient cash to meet its obligations, but holding too much cash can lower the return on assets.
Perhaps the most widely used measure of a company’s ability to pay current obligations is the current ratio. It is computed by dividing current assets by current liabilities.
At Home Depot, the current ratio at the 2009 balance sheet date is 1.20. This means that for every dollar of current liabilities, Home Depot has $1.20 of current assets to pay those obligations. It might be tempting to say that the higher this ratio becomes, the better off the company is. However, maintaining a very high current ratio restricts the amount that can be invested elsewhere in the business. For years the accepted standard for the current ratio was 2.0. But with the ability to efficiently manage cash flows, most companies now maintain a current ratio somewhat less than 2.0.
The quick ratio is a more stringent measure than the current ratio. We calculate this ratio by dividing quick assets by current liabilities. Quick assets include cash and cash equivalents, net receivables, and short-term investments.
As you can see from looking back at Home Depot’s balance sheet, inventories are approximately three-fourths of current assets. Quick assets exclude inventories from the numerator. For that reason, Home Depot’s quick ratio of 0.13 at the 2009 balance sheet date is much lower than the current ratio.
The receivable turnover ratio tells us the number of times per year a company can convert its accounts receivable into cash. For any company, the higher the turnover, the faster the cash collection on accounts receivable. We calculate receivable turnover by dividing net credit sales by average net receivables. This is yet another example of a ratio that contains an income measure in the numerator and a balance sheet measure in the denominator. Remember, in this type of ratio we always use an average amount in the denominator.
At Home Depot, the receivable turnover for 2009 is 63.9 times. This means that, on average, the company collected its receivables 63.9 times per year.
Like the receivable turnover ratio, we can also calculate the inventory turnover. The inventory turnover ratio measures the number of times inventory is sold and replaced during the year. Higher inventory turnover helps protect a company from obsolete inventory items. Inventory turnover is calculated by dividing cost of goods sold for the period by the average inventory.
At Home Depot, the inventory turnover for 2009 is 4.2 times, telling us that Home Depot sells and replaces its inventory about 4.2 times per year.