The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The study of the relationship between the capital structure and the variables...Alexander Decker
This document discusses a study examining the relationship between capital structure and value-based performance assessment variables in 219 companies listed on the Tehran Stock Exchange from 2007 to 2011. The study found a negative and statistically significant relationship between capital structure and value-based performance variables including economic value added, market value added, and cash value added. The document provides background on capital structure decision making and reviews several previous related studies that also found negative relationships between capital structure metrics like leverage and performance indicators like return on assets and profitability.
This document reviews different financial performance measures and their ability to measure value creation. It criticizes traditional accounting-based measures for being inaccurate and subjective, and for not aligning with the goal of maximizing shareholder wealth. Specifically, accounting allows earnings manipulation and does not consider the cost of capital. The document then examines alternative "economic value" measures like Economic Value Added (EVA), Cash Flow Return on Investment (CFROI), and Shareholder Value Added (SVA), which aim to address the shortcomings of accounting measures by incorporating the cost of capital. It compares these measures on how well they associate with stock returns and discounted cash flow valuations, and their implications for management incentives.
This document provides an overview of financial statement analysis and ratio analysis. It discusses the objectives of ratio analysis, different types of ratios including liquidity, leverage, activity and profitability ratios. It also explains the DuPont analysis method and how ratios can be used to evaluate past performance, benchmark against competitors, and help forecast future performance and stock returns. Examples are provided to illustrate liquidity, leverage, profitability and activity ratios using financial data from Dell.
Determinants of corporate profitability in developing economiesAlexander Decker
This document analyzes the determinants of corporate profitability in developing economies, specifically Nigeria. A study was conducted using data from 40 randomly selected companies over 5 years. The study found positive relationships between firm size and financial leverage with corporate profitability. Capital structure and cash liquidity were found to have negative relationships with corporate profitability. The study recommended using different profitability indices and including additional variables to improve the model.
This document summarizes a study examining the antecedents of budgetary slack. The study hypothesizes that budgetary slack will be higher for more diversified firms and firms pursuing differentiation strategies. It also hypothesizes that diversified firms and differentiation strategists will place less emphasis on meeting budgets and rely less on incentive systems tied to budget targets. The study involved surveying 101 Indonesian firms to analyze the relationships between these variables, finding that diversification and business strategy influence budgetary slack indirectly through their effects on budget emphasis. Managers with low power distance reacted more strongly to budget emphasis than those with high power distance.
The document discusses creating an investment index based on corporate governance styles known to be associated with superior business performance and stock yields. Research has shown that certain governance styles can be used as an effective screen to select stocks that outperform market indexes. The proposed Strategic Corporate Governance 25 Index outperformed the Russell 3000 and Russell Top 200 Growth Indexes over a four-year period from 2006 to 2010, with a cumulative return of 10.2% versus the indexes' returns of 5-7%.
The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The study of the relationship between the capital structure and the variables...Alexander Decker
This document discusses a study examining the relationship between capital structure and value-based performance assessment variables in 219 companies listed on the Tehran Stock Exchange from 2007 to 2011. The study found a negative and statistically significant relationship between capital structure and value-based performance variables including economic value added, market value added, and cash value added. The document provides background on capital structure decision making and reviews several previous related studies that also found negative relationships between capital structure metrics like leverage and performance indicators like return on assets and profitability.
This document reviews different financial performance measures and their ability to measure value creation. It criticizes traditional accounting-based measures for being inaccurate and subjective, and for not aligning with the goal of maximizing shareholder wealth. Specifically, accounting allows earnings manipulation and does not consider the cost of capital. The document then examines alternative "economic value" measures like Economic Value Added (EVA), Cash Flow Return on Investment (CFROI), and Shareholder Value Added (SVA), which aim to address the shortcomings of accounting measures by incorporating the cost of capital. It compares these measures on how well they associate with stock returns and discounted cash flow valuations, and their implications for management incentives.
This document provides an overview of financial statement analysis and ratio analysis. It discusses the objectives of ratio analysis, different types of ratios including liquidity, leverage, activity and profitability ratios. It also explains the DuPont analysis method and how ratios can be used to evaluate past performance, benchmark against competitors, and help forecast future performance and stock returns. Examples are provided to illustrate liquidity, leverage, profitability and activity ratios using financial data from Dell.
Determinants of corporate profitability in developing economiesAlexander Decker
This document analyzes the determinants of corporate profitability in developing economies, specifically Nigeria. A study was conducted using data from 40 randomly selected companies over 5 years. The study found positive relationships between firm size and financial leverage with corporate profitability. Capital structure and cash liquidity were found to have negative relationships with corporate profitability. The study recommended using different profitability indices and including additional variables to improve the model.
This document summarizes a study examining the antecedents of budgetary slack. The study hypothesizes that budgetary slack will be higher for more diversified firms and firms pursuing differentiation strategies. It also hypothesizes that diversified firms and differentiation strategists will place less emphasis on meeting budgets and rely less on incentive systems tied to budget targets. The study involved surveying 101 Indonesian firms to analyze the relationships between these variables, finding that diversification and business strategy influence budgetary slack indirectly through their effects on budget emphasis. Managers with low power distance reacted more strongly to budget emphasis than those with high power distance.
The document discusses creating an investment index based on corporate governance styles known to be associated with superior business performance and stock yields. Research has shown that certain governance styles can be used as an effective screen to select stocks that outperform market indexes. The proposed Strategic Corporate Governance 25 Index outperformed the Russell 3000 and Russell Top 200 Growth Indexes over a four-year period from 2006 to 2010, with a cumulative return of 10.2% versus the indexes' returns of 5-7%.
This document summarizes a study on the impact of capital structure on risk and firm performance using empirical evidence from companies listed on the Bucharest Stock Exchange between 2000-2016. The study aims to analyze major capital structure theories and their relevance, explore factors influencing leverage, profitability, and risk, and discuss gaps in previous Romanian research. Variables examined include leverage ratios, size, growth, liquidity, risk, and profitability. The results provide some support for both the trade-off and pecking order theories of capital structure. Future research could further analyze macroeconomic variables and their effect on capital structure decisions.
Determinants of firms’ profitability in pakistanAlexander Decker
This document summarizes a research study that analyzed the determinants of profitability of Pakistani firms. The study examined the relationship between capital structure, financial leverage, firm size and corporate profitability. Data was collected from 50 Pakistani companies over 7 years. Regression analysis found a positive correlation between financial leverage and profitability, and between firm size and profitability. It found a negative correlation between capital structure and profitability. The study concluded additional variables could improve the model for determining corporate profitability.
A tool for measuring organization performance using ratio analysisAlexander Decker
This document discusses using ratio analysis to measure organizational performance. It begins by defining ratio analysis and outlining its importance for monitoring and improving performance. The study aims to examine how ratio analysis can be used as a tool for measuring organizational performance. It reviews relevant literature on ratio analysis and discusses various types of ratios and their classification. The methodology section outlines the survey approach used to collect data from employees of a company. Hypothesis testing is used to analyze the relationship between ratio analysis and organizational performance. The results support the hypothesis that ratio analysis highlights the importance of effective management.
The document discusses the process of fundamental analysis that equity research analysts use to value stocks. It involves gathering data on the economy, industry, and specific companies, building models to analyze the data and project financials. Analysts determine the business outlook and stock value using methods like discounted cash flow analysis. Based on their research and investment style, analysts will recommend buying, selling, or holding a stock. The career requires strong quantitative skills, as well as excellent communication skills to present recommendations.
This document outlines a 4-day training programme on capital project management for the Seychelles Ministry of Finance. The training will cover topics such as capital budgeting, project initiation and planning, cost estimation, risk management, and project execution and control. Participants will learn techniques for financial analysis of projects, developing project plans, monitoring project performance, and properly closing out projects. The goal is to equip Ministry staff with skills for managing all stages of capital projects from identification of needs to final evaluation.
Financial performance and identify affecting factors in this performance of n...Alexander Decker
This document discusses a study assessing the financial performance and factors affecting performance of non-oil manufacturing companies listed on the Libyan stock market from 1999-2008. The study uses financial ratio analysis to measure liquidity, operational efficiency, and profitability. It identifies 9 variables to analyze, with return on assets as the dependent variable and 7 independent variables related to liquidity, operations, expenses, size, and age. Statistical analysis found relationships between liquidity/operational ratios and return on assets. Specifically, 3 ratios showed negative relationships with ROA while 5 showed positive relationships. The study aims to evaluate performance and identify weaknesses to help companies and investors.
This document presents a summer training presentation on working capital management. It introduces working capital as the funds required for day-to-day business operations. The objectives are to determine working capital requirements, study working capital components, and examine financial performance. The research methodology uses a descriptive design. Data is collected from secondary sources like annual reports and analyzed using current, quick, receivables, and working capital ratios from 2008 to 2011. Suggestions include raising short-term funds and balancing production capacities. The conclusions state the company has an effective working capital management system and is competing well domestically and internationally.
Mergers & acquisition and firm performance evidence from the ghana stock exc...Alexander Decker
This research study examined the impact of mergers and acquisitions (M&A) on firm performance in Ghana from 1999-2010. The univariate analysis showed declining profitability after mergers for all firms, with significant differences in pre-and post-merger profitability. The panel data methodology also indicated M&As had a significant negative effect on firm profitability. Additionally, the results showed that risk and firm size had significantly negative relationships with profitability, while debt capital and firm growth enhanced profitability. Prior literature on the impact of M&As on performance has shown inconsistent results, with some studies finding improved performance and others finding losses or mixed/insignificant effects.
The document discusses company analysis and stock valuation. It provides guidance on analyzing a company's competitive strategies, growth potential, management quality, and financials to estimate intrinsic value. Key steps include conducting a SWOT analysis, comparing intrinsic value to market price, and monitoring assumptions to determine when to sell. The overall aim is to identify undervalued stocks by focusing on long-term prospects and downside protection.
Analysis and Interpretation of Financial Statement as a Managerial Tool for D...ijtsrd
Financial statement analysis and interpretation is a completely vital tool of exact control choice making is enterprise employer. Good decision ensures commercial enterprise survival, profitability and increase. Without financial announcement evaluation in investment choices, a company is probably to make decisions that may spell its doom. Poor or loss of qualitative financial announcement evaluation could result in funding returns, low profitability or even incapability to identify feasible funding possibilities the principle goal of this challenge is therefore, became to decide how corporations should use economic statement evaluation and interpretation to resource management choice and to avoid the troubles highlighted above primary and secondary records are employee to develop the scope of this have a look at. Organizational profitability has courting with monetary declaration evaluation and interpretation based management selection however not drastically appreciably. Proper use of monetary announcement evaluation must be made now not only in funding but additionally in different regions of selection making. Prof. H Bhaskar Shetty | Pooja Kumari U "Analysis and Interpretation of Financial Statement as a Managerial Tool for Decision Making" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23962.pdfPaper URL: https://www.ijtsrd.com/management/accounting-and-finance/23962/analysis-and-interpretation-of-financial-statement-as-a-managerial-tool-for-decision-making/prof-h-bhaskar-shetty
This document presents the SME Co-operation Framework, a model created to analyze collaboration between small and medium enterprises (SMEs). The framework combines three dimensions of SME cooperation - strategic, management, and social - with internal and external factors influencing collaboration. The author applies this framework to summarize why SMEs should cooperate, common problems they face in adopting collaborative approaches, and factors influencing the effectiveness of interfirm collaboration. The findings indicate that cooperation can improve SME performance but risks of failure are reduced when success factors are considered.
Effect of working capital on profitability in indian markets and concept of z...mvkdel
This document provides an analysis of the relationship between working capital management and profitability for Indian companies from 2005-2010. It discusses key concepts around working capital, including how it refers to current assets and liabilities required for short-term financing. Prior research has shown that both excessive and low levels of working capital can negatively impact profitability. The document reviews literature on working capital management and profitability relationships. It aims to contribute to understanding how working capital management impacts profitability to help managers make decisions that create shareholder value, especially in emerging markets like India.
Impact of corporate diversification on the market value of firmsAlexander Decker
This document summarizes a study that investigates the impact of diversification on the market value of banks in Nigeria. The study hypothesized that diversification does not significantly impact market value. Using regression analysis, the results rejected this null hypothesis and found that diversification does significantly impact market value of banks in Nigeria. Prior literature on the impact of diversification has shown mixed and inconclusive results. Some studies found diversification reduced firm value while others found no relationship or that diversification increased value. The document reviews these mixed findings from prior studies.
The document provides an overview of fundamental analysis. It discusses that fundamental analysis determines a stock's value by focusing on a company's business and prospects. It also outlines some key questions and processes in fundamental analysis including macroeconomic analysis, industry analysis, and company analysis. It then discusses how to identify strong companies and provides examples of benchmarking companies. Finally, it outlines commonly used valuation methods like discounted cash flow analysis and relative valuation.
This document discusses various techniques for environmental scanning and monitoring, including SWOT analysis, PEST analysis, QUEST analysis, competitor analysis, and industry analysis. It provides overview and descriptions of each technique. SWOT analysis involves identifying internal strengths and weaknesses and external opportunities and threats. PEST analysis examines political, economic, social and technological macroenvironmental factors. Industry analysis helps understand a company's position relative to competitors. Competitor analysis assesses strengths and weaknesses of current and potential rivals.
This document introduces two business analysis models: SWOT and PEST. SWOT analyzes internal strengths and weaknesses as well as external opportunities and threats of a business. PEST analyzes external political, economic, social, and technological factors that may impact a business. Examples are provided for each model, such as brand image as a strength and new regulations as a political factor. Readers are asked to perform a SWOT analysis on themselves and identify differences between the two models.
This document discusses a study on the determinants of capital structure for agriculture sector firms in India. It finds that return on net worth, non-debt tax shield, profitability, and growth are positively related to financial leverage for these firms. Meanwhile, return on capital employed, interest cover ratio, collateralizable value of assets, and size are negatively related to financial leverage. The study uses correlation and regression analysis of data from 18 agriculture sector firms over 9 years to analyze the relationships between leverage and various firm-specific determinants.
This document summarizes a research study that examined the relationship between working capital management and profitability for non-listed firms in Ghana from 2004-2009. The study used cash conversion cycles and its components (days of receivables, days of inventory, and days of payables) as measures of working capital management. Gross operating profit to total assets was used as the measure of firm performance. The results showed that profitability was negatively related to the length of the cash conversion cycle. Specifically, performance was positively affected by reducing days of receivables and days of inventory. Additionally, firm size, GDP growth, and sales growth positively impacted performance. The study suggests that managers in emerging markets should focus on effective working capital management to improve
This document analyzes the financial ratios of Sample Company using its financial statements from December 31, 2000. Various profitability ratios are calculated, including return on investment (ROI), return on equity (ROE), operating margin, net profit margin, and price-earnings ratio. Sample Company's ROI of 4.8% and ROE are below industry averages. Liquidity, activity, and financial leverage ratios are also examined but not discussed in detail. Historical trends and comparisons to industry benchmarks are used to evaluate Sample Company's financial performance. Recommendations for improvement are not provided.
Running head TOYOTA COMPANY VALUATION .docxtoltonkendal
Running head: TOYOTA COMPANY VALUATION 1
TOYOTA COMPANY VALUATION 2
Toyota Company Valuation
Student Name
Institution
Introduction
Toyota Company is an organization which operates globally as discussed in the previous assignment. It deals with the manufacture and sells of vehicles and their spare parts. To evaluate an organization means going through some steps which a company use to conduct an assessment of the economic value in a market. The process is mostly used by that individual who takes part in the financial market which assists them to determine the price to pay or take while transacting business. Determining the financial status of an organization assist investors to be in a position to determine whether they should invest in that organization or what. Price-earnings ratio is one of the commonly used tools more so when selecting stock (Ahmad et al., 2016).Decision making in an organization can be challenging. Hence it requires a person conduct appropriate analysis to avoid losses in an organization. Also, it is important that each organization ensures that they have the up to date financial report. With this, it enables an organization to determine whether it is working as per the goals and strategies which the organization has set.
PE Ratio
It is a kind of ration which in modern-day business play a major role more so while selecting the kind of stock to work with. The formula for getting the price earning ration is:
Price-earnings ratio=determine the current market worth per share/current earning worth in each share
PE ration gives the stakeholder, employee management and investor’s idea of what price the current market is willing to pay for the company earning. It explains the value of a product in the market. Research indicates that the recent price earning ration for Toyota Company is 10.72 as per 13th December 2017 (Buchman et al., 2016).An organization with a high PE ratio indicate that there is the great hope for it to perform well in future and also investors may wish to invest in this business. It is the case with Toyota which currently is doing well and hence it an encouragement to the investor to invest there.
Comparison with Other Organization
From the current valuation of General Motor, it is indicated that the current price earnings ratio is 8.6 as per 13th December 2017 showing that it is lower than that of the Toyota Company. However, by this, it indicates that Toyota is in a better position compared to General Motors and most investors would prefer investing in Toyota (Ahmad et al., 2016). For the GM there was a decrease in sales because of the high competition in the market which lead to a decline in the ratio.
Whether the Organization Is Undervalued or Overvalued
To determine whether an organization is undervalued or overvalued there are ...
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document summarizes a study on the impact of capital structure on risk and firm performance using empirical evidence from companies listed on the Bucharest Stock Exchange between 2000-2016. The study aims to analyze major capital structure theories and their relevance, explore factors influencing leverage, profitability, and risk, and discuss gaps in previous Romanian research. Variables examined include leverage ratios, size, growth, liquidity, risk, and profitability. The results provide some support for both the trade-off and pecking order theories of capital structure. Future research could further analyze macroeconomic variables and their effect on capital structure decisions.
Determinants of firms’ profitability in pakistanAlexander Decker
This document summarizes a research study that analyzed the determinants of profitability of Pakistani firms. The study examined the relationship between capital structure, financial leverage, firm size and corporate profitability. Data was collected from 50 Pakistani companies over 7 years. Regression analysis found a positive correlation between financial leverage and profitability, and between firm size and profitability. It found a negative correlation between capital structure and profitability. The study concluded additional variables could improve the model for determining corporate profitability.
A tool for measuring organization performance using ratio analysisAlexander Decker
This document discusses using ratio analysis to measure organizational performance. It begins by defining ratio analysis and outlining its importance for monitoring and improving performance. The study aims to examine how ratio analysis can be used as a tool for measuring organizational performance. It reviews relevant literature on ratio analysis and discusses various types of ratios and their classification. The methodology section outlines the survey approach used to collect data from employees of a company. Hypothesis testing is used to analyze the relationship between ratio analysis and organizational performance. The results support the hypothesis that ratio analysis highlights the importance of effective management.
The document discusses the process of fundamental analysis that equity research analysts use to value stocks. It involves gathering data on the economy, industry, and specific companies, building models to analyze the data and project financials. Analysts determine the business outlook and stock value using methods like discounted cash flow analysis. Based on their research and investment style, analysts will recommend buying, selling, or holding a stock. The career requires strong quantitative skills, as well as excellent communication skills to present recommendations.
This document outlines a 4-day training programme on capital project management for the Seychelles Ministry of Finance. The training will cover topics such as capital budgeting, project initiation and planning, cost estimation, risk management, and project execution and control. Participants will learn techniques for financial analysis of projects, developing project plans, monitoring project performance, and properly closing out projects. The goal is to equip Ministry staff with skills for managing all stages of capital projects from identification of needs to final evaluation.
Financial performance and identify affecting factors in this performance of n...Alexander Decker
This document discusses a study assessing the financial performance and factors affecting performance of non-oil manufacturing companies listed on the Libyan stock market from 1999-2008. The study uses financial ratio analysis to measure liquidity, operational efficiency, and profitability. It identifies 9 variables to analyze, with return on assets as the dependent variable and 7 independent variables related to liquidity, operations, expenses, size, and age. Statistical analysis found relationships between liquidity/operational ratios and return on assets. Specifically, 3 ratios showed negative relationships with ROA while 5 showed positive relationships. The study aims to evaluate performance and identify weaknesses to help companies and investors.
This document presents a summer training presentation on working capital management. It introduces working capital as the funds required for day-to-day business operations. The objectives are to determine working capital requirements, study working capital components, and examine financial performance. The research methodology uses a descriptive design. Data is collected from secondary sources like annual reports and analyzed using current, quick, receivables, and working capital ratios from 2008 to 2011. Suggestions include raising short-term funds and balancing production capacities. The conclusions state the company has an effective working capital management system and is competing well domestically and internationally.
Mergers & acquisition and firm performance evidence from the ghana stock exc...Alexander Decker
This research study examined the impact of mergers and acquisitions (M&A) on firm performance in Ghana from 1999-2010. The univariate analysis showed declining profitability after mergers for all firms, with significant differences in pre-and post-merger profitability. The panel data methodology also indicated M&As had a significant negative effect on firm profitability. Additionally, the results showed that risk and firm size had significantly negative relationships with profitability, while debt capital and firm growth enhanced profitability. Prior literature on the impact of M&As on performance has shown inconsistent results, with some studies finding improved performance and others finding losses or mixed/insignificant effects.
The document discusses company analysis and stock valuation. It provides guidance on analyzing a company's competitive strategies, growth potential, management quality, and financials to estimate intrinsic value. Key steps include conducting a SWOT analysis, comparing intrinsic value to market price, and monitoring assumptions to determine when to sell. The overall aim is to identify undervalued stocks by focusing on long-term prospects and downside protection.
Analysis and Interpretation of Financial Statement as a Managerial Tool for D...ijtsrd
Financial statement analysis and interpretation is a completely vital tool of exact control choice making is enterprise employer. Good decision ensures commercial enterprise survival, profitability and increase. Without financial announcement evaluation in investment choices, a company is probably to make decisions that may spell its doom. Poor or loss of qualitative financial announcement evaluation could result in funding returns, low profitability or even incapability to identify feasible funding possibilities the principle goal of this challenge is therefore, became to decide how corporations should use economic statement evaluation and interpretation to resource management choice and to avoid the troubles highlighted above primary and secondary records are employee to develop the scope of this have a look at. Organizational profitability has courting with monetary declaration evaluation and interpretation based management selection however not drastically appreciably. Proper use of monetary announcement evaluation must be made now not only in funding but additionally in different regions of selection making. Prof. H Bhaskar Shetty | Pooja Kumari U "Analysis and Interpretation of Financial Statement as a Managerial Tool for Decision Making" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23962.pdfPaper URL: https://www.ijtsrd.com/management/accounting-and-finance/23962/analysis-and-interpretation-of-financial-statement-as-a-managerial-tool-for-decision-making/prof-h-bhaskar-shetty
This document presents the SME Co-operation Framework, a model created to analyze collaboration between small and medium enterprises (SMEs). The framework combines three dimensions of SME cooperation - strategic, management, and social - with internal and external factors influencing collaboration. The author applies this framework to summarize why SMEs should cooperate, common problems they face in adopting collaborative approaches, and factors influencing the effectiveness of interfirm collaboration. The findings indicate that cooperation can improve SME performance but risks of failure are reduced when success factors are considered.
Effect of working capital on profitability in indian markets and concept of z...mvkdel
This document provides an analysis of the relationship between working capital management and profitability for Indian companies from 2005-2010. It discusses key concepts around working capital, including how it refers to current assets and liabilities required for short-term financing. Prior research has shown that both excessive and low levels of working capital can negatively impact profitability. The document reviews literature on working capital management and profitability relationships. It aims to contribute to understanding how working capital management impacts profitability to help managers make decisions that create shareholder value, especially in emerging markets like India.
Impact of corporate diversification on the market value of firmsAlexander Decker
This document summarizes a study that investigates the impact of diversification on the market value of banks in Nigeria. The study hypothesized that diversification does not significantly impact market value. Using regression analysis, the results rejected this null hypothesis and found that diversification does significantly impact market value of banks in Nigeria. Prior literature on the impact of diversification has shown mixed and inconclusive results. Some studies found diversification reduced firm value while others found no relationship or that diversification increased value. The document reviews these mixed findings from prior studies.
The document provides an overview of fundamental analysis. It discusses that fundamental analysis determines a stock's value by focusing on a company's business and prospects. It also outlines some key questions and processes in fundamental analysis including macroeconomic analysis, industry analysis, and company analysis. It then discusses how to identify strong companies and provides examples of benchmarking companies. Finally, it outlines commonly used valuation methods like discounted cash flow analysis and relative valuation.
This document discusses various techniques for environmental scanning and monitoring, including SWOT analysis, PEST analysis, QUEST analysis, competitor analysis, and industry analysis. It provides overview and descriptions of each technique. SWOT analysis involves identifying internal strengths and weaknesses and external opportunities and threats. PEST analysis examines political, economic, social and technological macroenvironmental factors. Industry analysis helps understand a company's position relative to competitors. Competitor analysis assesses strengths and weaknesses of current and potential rivals.
This document introduces two business analysis models: SWOT and PEST. SWOT analyzes internal strengths and weaknesses as well as external opportunities and threats of a business. PEST analyzes external political, economic, social, and technological factors that may impact a business. Examples are provided for each model, such as brand image as a strength and new regulations as a political factor. Readers are asked to perform a SWOT analysis on themselves and identify differences between the two models.
This document discusses a study on the determinants of capital structure for agriculture sector firms in India. It finds that return on net worth, non-debt tax shield, profitability, and growth are positively related to financial leverage for these firms. Meanwhile, return on capital employed, interest cover ratio, collateralizable value of assets, and size are negatively related to financial leverage. The study uses correlation and regression analysis of data from 18 agriculture sector firms over 9 years to analyze the relationships between leverage and various firm-specific determinants.
This document summarizes a research study that examined the relationship between working capital management and profitability for non-listed firms in Ghana from 2004-2009. The study used cash conversion cycles and its components (days of receivables, days of inventory, and days of payables) as measures of working capital management. Gross operating profit to total assets was used as the measure of firm performance. The results showed that profitability was negatively related to the length of the cash conversion cycle. Specifically, performance was positively affected by reducing days of receivables and days of inventory. Additionally, firm size, GDP growth, and sales growth positively impacted performance. The study suggests that managers in emerging markets should focus on effective working capital management to improve
This document analyzes the financial ratios of Sample Company using its financial statements from December 31, 2000. Various profitability ratios are calculated, including return on investment (ROI), return on equity (ROE), operating margin, net profit margin, and price-earnings ratio. Sample Company's ROI of 4.8% and ROE are below industry averages. Liquidity, activity, and financial leverage ratios are also examined but not discussed in detail. Historical trends and comparisons to industry benchmarks are used to evaluate Sample Company's financial performance. Recommendations for improvement are not provided.
Running head TOYOTA COMPANY VALUATION .docxtoltonkendal
Running head: TOYOTA COMPANY VALUATION 1
TOYOTA COMPANY VALUATION 2
Toyota Company Valuation
Student Name
Institution
Introduction
Toyota Company is an organization which operates globally as discussed in the previous assignment. It deals with the manufacture and sells of vehicles and their spare parts. To evaluate an organization means going through some steps which a company use to conduct an assessment of the economic value in a market. The process is mostly used by that individual who takes part in the financial market which assists them to determine the price to pay or take while transacting business. Determining the financial status of an organization assist investors to be in a position to determine whether they should invest in that organization or what. Price-earnings ratio is one of the commonly used tools more so when selecting stock (Ahmad et al., 2016).Decision making in an organization can be challenging. Hence it requires a person conduct appropriate analysis to avoid losses in an organization. Also, it is important that each organization ensures that they have the up to date financial report. With this, it enables an organization to determine whether it is working as per the goals and strategies which the organization has set.
PE Ratio
It is a kind of ration which in modern-day business play a major role more so while selecting the kind of stock to work with. The formula for getting the price earning ration is:
Price-earnings ratio=determine the current market worth per share/current earning worth in each share
PE ration gives the stakeholder, employee management and investor’s idea of what price the current market is willing to pay for the company earning. It explains the value of a product in the market. Research indicates that the recent price earning ration for Toyota Company is 10.72 as per 13th December 2017 (Buchman et al., 2016).An organization with a high PE ratio indicate that there is the great hope for it to perform well in future and also investors may wish to invest in this business. It is the case with Toyota which currently is doing well and hence it an encouragement to the investor to invest there.
Comparison with Other Organization
From the current valuation of General Motor, it is indicated that the current price earnings ratio is 8.6 as per 13th December 2017 showing that it is lower than that of the Toyota Company. However, by this, it indicates that Toyota is in a better position compared to General Motors and most investors would prefer investing in Toyota (Ahmad et al., 2016). For the GM there was a decrease in sales because of the high competition in the market which lead to a decline in the ratio.
Whether the Organization Is Undervalued or Overvalued
To determine whether an organization is undervalued or overvalued there are ...
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
FINANCIAL PERFORMANCE ANALYSIS OF BHARTI AIRTEL LIMITEDyashmin khatun
This document discusses financial statement analysis and ratio analysis. It provides background on analyzing a company's financial stability, profitability, and performance over time using various ratios and comparisons. The objectives are to analyze the financial position, liquidity, and profitability of Bharti Airtel over a five year period and identify its financial strengths and weaknesses. Limitations include a lack of structured data from the company and a limited three year study period relying on secondary data. A literature review found previous research analyzing the relationship between working capital management, cash conversion cycles, and company profitability.
1. Select a different article from a current academic journal (.docxpaynetawnya
1. Select a different article from a current academic journal (last ten years) that deals with gender issues related to criminal justice (this may be interdisciplinary). An academic journal is not a magazine, a book, newspaper, etc. Examples of acceptable academic journals include: Criminology, Social Forces, Criminal Justice Education, Criminal Justice and Behavior, Crime and Delinquency, Journal of Black Psychology, etc. Topics of selected articles should focus on a theoretical explanation of criminal behavior.
NOTE: Academic journal articles may be obtained from electronic journals found on the internet or from traditional library sources.
2. Each student should have her/his selected article approved by the instructor.
3. Read the article.
4. Write a critique of the article selected. The guidelines and grading rubric are shown below.
General Guidelines:
Writing 20%
• Paper meets APA/Graduate School standards.
• Paper is organized; each paragraph flows logically into the next paragraph.
• Appropriate terminology it used; writing is clear and concise.
• Proper spelling and grammar is used; sentences are properly constructed.
Content 80%
• Appropriate article selection (scholarly and/or empirical); recent (last ten years).
• Brief overview of the article is provided; the thesis of the article is clearly stated.
• A description of the research problem is provided.
• Research methods used to study the problem are discussed and critiqued in detail.
• The authors’ conclusions and recommendations are provided.
• Contributions to the literature are discussed in detail along with a brief discussion of conclusions/recommendations.
• The critique addresses the following questions: What methods did the author use to investigate the topic? Were the appropriate methods used? Did the author's approach to supporting the thesis make sense? Did the author employ the methods correctly? Did you discover any errors in the way the research was conducted?
Financial Ratio Analysis: The Performance of General Motors
FINANCIAL RATIO
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FINANCIAL RATIO
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Financial Ratio Analysis: The Performance of General Motors
The financial health of a firm plays a significant role in its survivability and long-term success. Companies record and track their operational activities on financial statements, such as the balance sheet and income statement. The Securities and Exchange Commission (SEC) mandates and enforces organizations that trade in the United States (US) to maintain accurate accounting statements and report them to the SEC. The SEC’s purpose is to protect investors and the public from fraudulent and manipulative business practices (Investopedia, 2017).
Although accounting statements show a glimpse of a company’s performance, they do not provide a complete representation of a firm’s financial standings. Investors, creditors, managers, and other users must apply various measuring tools to determine the overall strength of their companie ...
This document discusses the usefulness and limitations of financial ratio analysis in evaluating a firm's performance. It begins by defining common ratios like liquidity, leverage, profitability, and valuation ratios. While ratios can help analyze statements, judge efficiency, locate weaknesses, and compare performance, the document notes they are limited by factors like inflation, seasonal changes, different industries, and conflicting ratios. However, the document argues ratios still serve an important role by facilitating analysis of financial statements, judging efficiency, locating weaknesses, formulating plans, comparing performance over time, and assessing operating efficiency. Therefore, despite limitations, financial ratio analysis remains an important tool for evaluating a firm's performance.
ANALYSIS OF FINANCIAL PERFORMANCE OF THOMAS COOK (INDIA) LTD. USING RATIO ANA...Anirban Chakraborty
ANALYSIS OF FINANCIAL PERFORMANCE OF THOMAS COOK (INDIA) LTD. USING RATIO ANALYSIS
This study gives in detail the analysis of various financial ratios based upon the past as well as
the present performance of Thomas Cook (India) Ltd. expressed in financial data. Based upon
the results from these financial ratios conclusions are driven out that whether the company has
been earning profits or not and also that how much it has used these results in its growth. So, the
company can also manage each of its current assets namely cash management, accounts
receivable management and also its liabilities like creditors, loans, bills payables etc. so that it
can maintain an identical financial ratio for each of its business aspects like solvency ratios,
turnover ratios, profitability ratios etc.
Financial statements analysis has several advantages or objectives:
1. It helps management judge the overall and segment-wise operational efficiency of the business.
2. It measures the short-term and long-term financial position of the business.
3. It assesses the growth potential of the business.
This study attempts to measure the financial performance of selected Bangladeshi commercial banks for the period 2010-2016 through using the DuPont model which is an important tool for measuring profitability and judging the financial performance of any financial entity. The modified DuPont model disaggregates ROE (which is an indication of the earning power of the firm) into five components: tax burden, interest burden, profit margin, total asset turnover, and equity multiplier ratios. Empirical results exhibit that Dhaka Bank has performed best in every aspect and secured the first position due to highest average ROE. On the other hand, AB Bank is the least performer among all the banks due to its lowest average ROE. Finally, this study suggests that a company can have high ROE if it has high operating margin, lower interest, lower income tax, efficient use of assets and high use of debt in its capital structure.
This document outlines the methodology used for the Dow Jones Sustainability Indices (DJSI). It describes the index family structure, eligibility criteria, sustainability scoring process, index construction methodology, and maintenance procedures. Key aspects include using a best-in-class approach to select the most sustainable companies in each industry, based on annual sustainability scores from the Corporate Sustainability Assessment. The indices aim to track leading sustainability performers while maintaining industry diversification.
- RobecoSAM conducts an annual Corporate Sustainability Assessment (CSA) to evaluate over 3,400 large, publicly traded companies on economically, environmentally, and socially relevant sustainability factors.
- The CSA uses industry-specific questionnaires with approximately 80-120 questions to comprehensively analyze companies while focusing on issues most material to each industry. Company responses are scored and ranked within industries.
- Various sustainability indices, including the Dow Jones Sustainability Indices, are constructed based on companies' CSA scores. While all rely on the CSA, each index family may apply adjustments to scores based on their objectives of identifying pure sustainability leaders or maintaining risk/return profiles similar to benchmarks.
The main ideology behind the conception of ERM is to help companie.docxoreo10
The main ideology behind the conception of ERM is to help companies proactively identify, analyze and manage risks and events that have the capability of impacting the business. Developing a collaborative response is crucial is possible when early identification of risk is achieved. Changes in the business environment require sound judgment in anticipating both the consequences of the particular event and the potential likelihood.
The research conducted illustrates that the difficulty is intensified because the company should be innovative and adaptive, a feature that lacks in many corporations. Following the implementation in different companies, the primary challenge posed is locating the respective area in the company where its potentiality is more enhanced. The transition has been implemented from the traditional leadership function to the various levels of operation.
One of the crucial insights obtained from the interaction with companies adopting the ERM system indicates that the change is effective especially if used in a suitable context. The funds in implementing the system may pose a challenge, however, in such a situation, a counter project can be carried out in regards to the nature of the company. So, upon implementation, the ERM program progresses from its initial establishment to a sophisticated program with prolonged use.
ERM is regarded as a complete approach and as a result, leaders can trust the program as a comprehensive approach to risk management. The plan is meant to scratch through a broad range of operational threats in the internal and external environment of the company that could impact its short term and long-term success. In conclusion, the general conclusion is right; it is true to say that ERM has enabled the provision that is crucial in fulfilling and excelling in leadership mandate.
Companies:
1- Oula fuel marketing co
2- Kuwait resort company
http://www.boursakuwait.com.kw/Stock/Financials.aspx?Stk=651&S=INC
ACT553 – FINANCIAL ACOUNTING II
FALL 2016
1. Revenue Recognition
Revenue is the largest item on the income statement and we must assess it on a quantitative and qualitative basis.
_Use horizontal analysis to identify any time trends
_Compare the horizontal analyses of the companies.
_Consider the current economic environment and the company`s competitive landscape. Given that they operate in the same industry, you may expect similar revenue trends.
_Read the management’s discussion and analysis (MD&A) section of the annual reports to learn how the companies’ senior managers explain revenue levels and changes.
2. R&D Activities
Do the companies engage in substantial R&D activities?
_Determine the amount of the expense on the income statement. You may need to look in the footnotes or the MD&A for this information. Is the common-sized amount changing over time? What pattern is detected?
_Read the footnotes and assess the company’s R&D pipeline. What are the major outcomes ...
The document discusses various methods for measuring organizational performance, including financial ratios, benchmarking, and the balanced scorecard framework. It provides examples of common financial ratios used to evaluate liquidity, solvency, profitability, and other aspects of financial performance. Benchmarking allows for internal and external comparisons to best practices and competitors. The balanced scorecard is identified as a more comprehensive and efficient method than financial ratios alone because it considers non-financial factors and future performance against set standards from multiple perspectives.
This document discusses sources of financial information for analyzing companies, including published annual and quarterly reports, reports filed with the SEC like Forms 10-K and 10-Q, and reports from advisory services. It also describes analytical techniques used in financial statement analysis like horizontal analysis, vertical analysis, and ratio analysis. These techniques simplify identifying relationships and trends in financial data to evaluate a company's financial condition, performance, ability to pay debts, and profitability. The objective is to forecast future ability based on historical financial statements.
Understanding the Dynamics of Business Group Advantages and Affiliate Level A...inventionjournals
This paper explores the theory of the competitive advantages of business groups and their affiliates. The goal is to address the literature on emerging economies which remains short in providing the theoretical background on the nature of different types of emerging economy firms and their competitiveness. This research offers a theoretical framework on the specific competitive advantages of business groups and their affiliates. Some theoretical and practical implications are presented to elucidate the value of the paper towards our understanding on the growth and behavior of business groups.
The influence of good corporate governance, ownership structure and bank size...Alexander Decker
This document discusses a study that investigates the influence of good corporate governance, ownership structure, and bank size on bank performance and company value in the Indonesian banking industry. The study analyzed data from 16 publicly traded banks with foreign capital investment between 2007-2012. The results showed that good corporate governance had a significant positive effect on bank performance and company value, while ownership structure and bank size had mixed or insignificant effects on performance and value. Bank performance was found to have a significant positive effect on company value.
This document analyzes the effect of financial performance on stock prices of raw material producing companies listed on the Indonesian Stock Exchange from 2009-2013. It finds that variables like current ratio, debt to equity ratio, return on assets, and total asset turnover have a simultaneous significant effect on stock prices. However, in partial tests only total asset turnover is found to have an individually significant impact, while the other variables do not. The study uses multiple linear regression analysis on financial data from 7 sample companies to analyze the relationships between these financial metrics and stock price movements.
Financial Analysis On Financial Statements.pdfFinancial Analysis On Financial...Jacqueline Thomas
This document discusses financial statement analysis and financial forecasting. It begins by explaining the importance of financial statements like the income statement, balance sheet, and cash flow statement in evaluating a company's financial position and making decisions. It then discusses ratio analysis as a tool for analysis and forecasting. The document emphasizes that financial statements provide reliable and relevant information that can be used to analyze a company's profitability, liquidity, activity levels, and financial leverage. It also notes that cash flow analysis and forecasted financial statements are important for financial planning.
We hebben in het kort gekeken naar: een tweetal aspecten die van belang zijn bij standaardisatie; de lijst van risico’s; een voorstel voor een plan van aanpak. Ik ben benieuwd naar je vragen of opmerkingen. Bedankt voor je aandacht! Paulus Karremans [email_address] +31 654 75 62 64