Lenovo Financial Paper
Financial Analysis
Lenovo Group Limited
CONTENT I. Introduction 3 1. Background 3 2. Nature of business 8 3. Description of product/services 9 4. Current Revenue size and Profit 12 5. Major Market Served 15 6. Ownership 16 7. Other relevant basic information 17 8. Company`s business strategy 21 II. Analysis of Company Performance 21 1. Company Growth 21 2. Financial ratios 23 3. Liquidity 23 4. Leverage 25 5. Profitability – Dupont Analysis 26 6. Fiscal Fitness Alman’s z-score 27 III. Analysis of Company`s Value Creation 28 IV. FINANCIAL PROJECTIONS 31 1. Assumptions 31 2. Forecast Balance sheet of Lenovo 2013-2015 32 3. Forecast Income Statement of Lenovo 2013-2015 33 4. Forecast financial analysis 33 References 38
I. Introduction 1. Background
Lenovo Group Limited is a Chinese multinational computer hardware and electronics company with its operational headquarters in Morrisville, North Carolina, United States and its registered office in Hong Kong. Its products include personal computers, tablet computers, mobile phones, workstations, servers, electronic storage devices, IT management software and smart televisions. Lenovo is the world's second-largest PC vendor by 2011 market share (after Hewlett-Packard) and markets the ThinkPad line of notebook computers and the Think Centre line of desktops. Lenovo was founded in Beijing in 1984 and incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-Affiliated Corporations Index.
While the Lenovo brand came into existence only in 2004, the company has a much longer history. In 1984, Legend Holdings was formed with 25,000 RMB in a guard house in China. The company was incorporated in Hong Kong in 1988 and would grow to be the largest PC Company in China. Legend Holdings changed its name to Lenovo in 2004 and, in 2005, acquired the
Lenovo Group Limited
CONTENT I. Introduction 3 1. Background 3 2. Nature of business 8 3. Description of product/services 9 4. Current Revenue size and Profit 12 5. Major Market Served 15 6. Ownership 16 7. Other relevant basic information 17 8. Company`s business strategy 21 II. Analysis of Company Performance 21 1. Company Growth 21 2. Financial ratios 23 3. Liquidity 23 4. Leverage 25 5. Profitability – Dupont Analysis 26 6. Fiscal Fitness Alman’s z-score 27 III. Analysis of Company`s Value Creation 28 IV. FINANCIAL PROJECTIONS 31 1. Assumptions 31 2. Forecast Balance sheet of Lenovo 2013-2015 32 3. Forecast Income Statement of Lenovo 2013-2015 33 4. Forecast financial analysis 33 References 38
I. Introduction 1. Background
Lenovo Group Limited is a Chinese multinational computer hardware and electronics company with its operational headquarters in Morrisville, North Carolina, United States and its registered office in Hong Kong. Its products include personal computers, tablet computers, mobile phones, workstations, servers, electronic storage devices, IT management software and smart televisions. Lenovo is the world's second-largest PC vendor by 2011 market share (after Hewlett-Packard) and markets the ThinkPad line of notebook computers and the Think Centre line of desktops. Lenovo was founded in Beijing in 1984 and incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-Affiliated Corporations Index.
While the Lenovo brand came into existence only in 2004, the company has a much longer history. In 1984, Legend Holdings was formed with 25,000 RMB in a guard house in China. The company was incorporated in Hong Kong in 1988 and would grow to be the largest PC Company in China. Legend Holdings changed its name to Lenovo in 2004 and, in 2005, acquired the
References: 1. http://www.lenovo.com/lenovo/us/en/index.html reviewed on Oct 28th, 2012 2 3. http://www.gartner.com/technology/reprints.do?id=1-17W2BM3&ct=111103&st=sg reviewed on Oct 25th, 2012 4 5. http://shop.lenovo.com/ca/en/products/ Reviewed on Nov 2, 2012 6 7. http://www.aastocks.com/EN/Stock/CompanyFundamental.aspx?CFType=4&symbol=00992 Reviewed on Nov 2th, 2012