Financial Statement Analysis: United Parcel Service (UPS)
Financial Statement Analysis
Introduction to Management Accounting 561
August 31, 2010
Robert L. Hynous, Jr.
Financial Statement Analysis The primary principle of the financial statement analysis is to examine the accounting books for the accountability of review each year-end for profit or loss in a company to be review by the stockholders. Team A will review the financial statement analysis of two American companies; United Parcel Service (UPS) a service, Talbots (TLB) a retailer, and an International company Toyota (TMC) a manufacturer of automobiles. Each of these American companies has shares of stock on the New York Stock exchange and the International Company on the Tokyo Stock Exchange. However, there are several types of governing boards to help the companies meet certain standard in accounting procedures. The International Accounting Standard Board …show more content…
The DuPont model comes from the income statement. The learning team A finds that the DuPont model is very understandable and easy to calculate. The DuPont Model reporting for TM is 3.9 at the present and year before shows the same number 3.9. UPS report 34.1 at the present and the year before the DuPont number was down to 23.1. The TLB is report zero for 2010 and the same for year before (Forbes.com, 2010). Profit margin number gets it numbers by calculated the net income and divided by revenues. It shows that the higher profit margin shows more profitable over company and has better control of the finances. The profit margin for TM is 2.1% at the present and the year before it was up by 3.8%. The profit margin for UPS is reporting 5.7% at the current and the year before it show the numbers being up by 9.0%. The profit margin show for TLB is -0.8% at present and was down year before at -1.0
Introduction to Management Accounting 561
August 31, 2010
Robert L. Hynous, Jr.
Financial Statement Analysis The primary principle of the financial statement analysis is to examine the accounting books for the accountability of review each year-end for profit or loss in a company to be review by the stockholders. Team A will review the financial statement analysis of two American companies; United Parcel Service (UPS) a service, Talbots (TLB) a retailer, and an International company Toyota (TMC) a manufacturer of automobiles. Each of these American companies has shares of stock on the New York Stock exchange and the International Company on the Tokyo Stock Exchange. However, there are several types of governing boards to help the companies meet certain standard in accounting procedures. The International Accounting Standard Board …show more content…
The DuPont model comes from the income statement. The learning team A finds that the DuPont model is very understandable and easy to calculate. The DuPont Model reporting for TM is 3.9 at the present and year before shows the same number 3.9. UPS report 34.1 at the present and the year before the DuPont number was down to 23.1. The TLB is report zero for 2010 and the same for year before (Forbes.com, 2010). Profit margin number gets it numbers by calculated the net income and divided by revenues. It shows that the higher profit margin shows more profitable over company and has better control of the finances. The profit margin for TM is 2.1% at the present and the year before it was up by 3.8%. The profit margin for UPS is reporting 5.7% at the current and the year before it show the numbers being up by 9.0%. The profit margin show for TLB is -0.8% at present and was down year before at -1.0