Accounting statements and ratios provide a great deal of information about a company’s financial stability. Some of the concepts to be discussed in further detail include horizontal analysis, current ratio, quick ratio, and cash to current liabilities ratio. A horizontal analysis is used to compare data from two or more periods side by side. The current ratio reveals the relative amount of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the assets by the current liabilities. This paper will examine the financial standing of Apple, INC and provide recommendations on how to better improve their financial gains in the future.…
In order for a company to be financially healthy, it is of most importance that the company must analyze, interpret, and review the business’s annual financial reports. The financial analyses of the annual reports provide insights and information regarding the performances of the business. In this paper, I will be disclosing financial evaluations and comparisons between Coca-Coca and PepsiCo Incorporation. The visualizations used in this paper were designed to provide the analyses performed utilizing three financial analyses methods: vertical analysis, horizontal analysis, and ratios analysis. There will also be recommendations made on how Coke and Pepsi could improve their financial status.…
The Shareholders are going to be interested in the financial health of the company so it will be important to focus on profit ratios and return on investments. When evaluating a company’s financial health it is important to evaluate all positive and negative financial instances. When I meet with the design crew, investors, and CEO I will suggest that we paint an honest picture of our financial health. In accordance with the SEC and Sox act, it is our fiduciary responsibility to divulge all financial information even if it is negative. With that being said it is also a good idea to elaborate on the good points. We have seen some dives in our profit outputs but it will be important to highlight what caused the decline. Our investments and expansion plan will outline how our profits should rebound and increase in the years to come. Points like the capital structure, liquidity, strengths, weaknesses, plans to improve in the future, and profit ratios compared to industry averages are all important topics to consider when presenting an annual report to stakeholders (Fraser & Ormiston 2007).…
Balance Sheets and Income Statements is an approach to review the overall financial status of the company. We will be reviewing four companies in different industries’ balance sheet and income statements. With a technique to combine the statements we will be able to evaluate the companies’ income, expense and stockholder’s equity in the company. In reviewing Swift Transportation Company, Eastman Chemical Company, United Natural Foods, Inc. and Wells Fargo and Company over the course of the last few years we will be able to understand the value and growth potential of these companies.…
After thoroughly examining this company's financial statement, I have observed that three strengths of the financial statements are; that this company discloses financial statements from the early 90’s to present, which allows investors to view the company's development; It show the cash flow statement, so investors can see how much cash the company has to work with, and the financial statements include notes so an investor can follow any accounting differences not readily available by looking at the financial statements.…
In answering the following questions, please refer to the financial statements of Caterpillar Inc. (CAT) and the relevant Notes to these statements at the end of this write-up.…
Introduction: | Below is business memorandum to the CEO of Company G. Below is a chart that full meets the expectations of the task that was give. Each ratio is explained and the formulas used are listed along with the ratio finding. 1. That information is used to understand what our current trend and if it indicates a strength, weakness, no concern. Final Justification of identification of each ratio or trend as a strength, weakness, or no concern is given. 2. No outside sources where used to find the industry data quartiles because those numbers where already given on the attached “Statement Analysis Template Sheet” and we have assumed that the facts are current. | | |…
The income statement and balance sheet are very important in determining how profitable the company has been when looking at trends. As the company looks at the horizontal and vertical analysis for the past two years, we have found that the net income has increased. The income statement shows that the cost of goods sold decreased by 16%, selling and administrative expenses increased by 5%, and interest expense stayed the same when comparing it to the previous year. The balance sheet we can determine that the assets and liabilities both decreased. The company’s overall expenses decreased in the past year along with the company’s revenues, but the profit…
The succeeding content of this executive summary provides an analysis on Starbucks’ Corporation profit using the company’s most three most recent annual reports. Team B uses “the information contained in the company’s balance sheet and income statement noting that annual reporting period and fiscal year mean year-end numbers. Additionally, included is the company history, audit for the company, stock exchange listing, cash and cash equivalents at the end of its 2 most annual reporting periods. Moreover, total current assets, largest current assets, company’s total assets at the end of its 2 most recent annual reporting years. Furthermore, accounts payable, total current liabilities, two largest current liabilities, company’s total liabilities at the end of its 2 most recent annual reporting periods. Finally, company’s revenues and net income for the last 3 annual reporting periods, and the change in dollars in the company’s net income from its most recent annual reporting period to the previous annual reporting period” (Axia College, 2012, Week Two Course Syllabi).…
PM TI AGENDA Caterpillar Company & Strategy Assumptions PESTEL Analysis TCO Calculation Evaluation of Missing Information Recommendations TCO Improvement Axis Cost Sensitivity Estimation of Hidden Cost $60 Production Decision in Manitoba Currency Risk Assessment PM TI “Earthmoving solutions for today's challenges; 48 Hours Part Service Anywhere in the world or Caterpillar pays” Founded in 1925 in San Francisco Group providing: Manufacturing Construction and mining equipment Diesel and natural gas engines…
In this paper, after reviewing and analyzing Appendix A Specimen Financial Statement for PepsiCo and Appendix B Specimen Financial Statement for the Coca Cola Company, I would be providing a financial comparison between the two most known beverages company in the world PepsiCo and Coca-Cola. I will be supporting my financial analysis by showing vertical, horizontal, and ratio financial analysis for both companies. To provide explanation as to what to find in each financial analysis; vertical analysis refers to assets, liabilities and equities as a percentage as a whole. It is a method where each entry for each of the categories in a balance sheet is represented as a proportion of the total account. Horizontal analysis is a method which is used for evaluating financial statements data over a specific period of time. It shows if the company’s performance is improving or decreasing and it can be expressed in numeric amounts or percentage amounts. Finally, the Ratio analysis is the calculation and comparison of ratios which are shown in the company’s financial statements. It determines or states if the company is worth investing in or not.…
The three most common tools of financial analysis are the vertical analysis, the horizontal analysis, and the ration analysis (which will be discussed later). The vertical analysis evaluates financial statement data by expressing each item in a financial statement as a percentage of an original base amount (2010). The vertical analysis is also referred to as the common size analysis. The vertical analysis shows all data on a financial statement document in terms of a percentage. The vertical analysis will show how much assets, liabilities, or stockholders equity have gone up or declined from the year before. I am providing two examples of vertical analysis, one for PepsiCo. and one for Coca Cola to show which company has improved with assets and…
Understanding what is happening financially in the company insights provides the financial information system of accounting. One must have knowledge of numbers when working in accounting. The three basic activities in accounting are identifies, records, and communicates. The four financial statements are income statements, retained earnings statement, balance sheet, and statement of cash flow. Internal and external users are the groups that review financial information (Weygandt, 2008). The preparation of financial statements, are in an uncomplicated layout, easy to understand. Reporting financial statement accurately is important because if there is an error this can cause complications for the company or organization.…
Deere & Company net income for 2011 is $2,799,900, 2012 is $3,064,700, and 2013 $3,537,300. Caterpillar’s net profit is 4,928,000 in 2011, 5,681,000 in 2012, and 3,789,000 in 2013. When comparing the two, one can note that Caterpillar was doing better in 2011 and 2012. However, since they made changes and created strategy to improve the company they are much closer to Caterpillar in 2013. Comparing them to the industry in average they are doing well. The tractor and agricultural equipment industry comprised more than 1,000 companies, with Deere & Company, CNH Industrial N.V., AGCO Corporation, and Caterpillar generating half of all revenues. When evaluating Deere & Company’s income statement they have grown. Their total revenue, gross profit,…
Hasbro Inc. is currently the second largest toy maker in the United States, ranked only behind Mattel. The company designs and manufactures a diverse line of toy products and related items throughout the world, including traditional board games, electronic and interactive CD_ROM games, puzzles, action toys, plush products and infant products. Hasbro also licenses a number of trade names and property rights for use in connection with the sale by others of noncompeting toys and non-toy products. (Novel guide, 2010) The purpose of this paper is to interpret internal and external financial reports and statements. While using the financial reports and statements for decision-making, I will assess the financial activities and their effects on organizational performance. This information will assist in making the decision of whether or not I would become a shareholder and buy the company’s stock. Lastly, the information would assist me with the decision if I would work with the company if they had a position that fit my job description.…