Introduction: To begin the Financial Statement Analysis Project, two companies will be analyzed and compared side by side in terms of liquidity, solvency, and likelihood of investment via common stock purchase. The first company to be reviewed is Casey’s. Casey’s is a fueling station and convenience store business located primarily in small towns that are not already services by national-chain convenience stores. Competitive competencies include low prices, convenient locations, extended hours, wide product offerings, and high-quality service. As of April 2022, there are 2,452 stores open under the name Casey’s, GoodStop, or Bucky’s. In addition to these, the company owns two tobacco/nicotine product stores, a liquor only store, and a grocery …show more content…
Debt to equity shows the number of dollars of borrowing for each dollar of equity investment. The higher the number the riskier and the more the company relies on borrowing debt. Casey’s debt to equity ratios were 1.46 the most recent year and 1.31 the previous year. Murphy USA’s ratio was 4.02 the most recent year and 2.43 the previous year. Like debt to assets, the lower the ratio the better. Casey’s ratios were lower than Murphy USA’s for both years. Both company’s ratios got worse from the previous year to the most recent, but Casey’s remained smaller and only increased slightly while Murphy USA’s increased by 1.59. This shows that Casey’s is the more solvent company and the safer company to grant a loan due to the lower …show more content…
Their return on equity for the most recent year was 49.9% and was 48.9% the previous year. Casey’s return on equity was 16.3% the most recent year and was 17.5% the previous year. These calculations show that Murphy USA’s percentages were higher both years than Casey’s. Additionally, Murphy USA showed improvement in the most recent year when compared to the previous. Casey’s performed worse and had a lower return on equity the most recent year than the previous year. Murphy USA is better equipped to generate a return and a profit. Next, return on investment was considered. Again, murphy USA is the better company to buy stock from. Murphy USA’s return on investment for the most recent year was 11.8% and was 14.4% the previous year. Casey’s return on investment for the most recent year was 6.8% and was 7.4% the previous year. Both companies showed a decline in performance from the previous year to the most recent, but Murphy USA’s calculations were higher both years. This means that Murphy USA has a better performance based on their resources and has a stronger ability to use their assets to generate a
Debt - Equity ratio was included to show that both companies are financed with a large portion of debt, yet remain
To determine the financial positions of the two retailer companies, we first need to analyze their financial
Return on Equity Ratio 896.2/2.4=373.42x100=37,341.67 When obtaining the Return on Equity for Dollar Tree, you take the net income and divide it by the shareholder’s equity. When you obtain that amount then you multiply that by 100. Then you get your Return on Equity Amount. The net income by shares are up 2% from last year.
Comcast has many subsidiaries associated with the company. The company acquired Universal Studios and has merged with Time Warner a multi-billion dollar deal. I became interested in Comcast because of my favorite pass time, which is sitting at home watching television and enjoying a good movie. I conducted a research on Comcast and asked myself If I had 10,000 dollars would I invest it into this corporation? Upon making a decision to invest in the company I conducted a research on the ratio on the profitability, the solvency and the liquidity.
Interpreting Financial Results: Walgreens Corporation Walgreens Corporation is a global pharmaceutical company specializing in the wholesale and retail of prescription drugs and health and wellbeing products. The company boasts of a wide distribution network for pharmaceuticals, as well as the title of the largest purchaser of prescription medicine in the world. As of December 2014, the company is now a wholly owned subsidiary of Walgreens Boots Alliance, after a merger with Alliance Boots. Using ratio analysis, this paper seeks to analyse the financial statements of Walgreens Corporation and interpret these results against historical data, as well as industry benchmarks. Particular emphasis is on the balance sheet and the income statement from the year 2013 to 2015.
The first two ratios that help analyze a company’s profitability are asset turnover, how effectively a company uses its assets, and return on total assets, profitability of total assets regardless of how they are financed. For Dick’s Sporting Goods asset turnover is 2.18 and return on total assets is 8.41%; for comparison Nike’s assets turnover is 1.56 and return on total assets is 19.58%. The reason why Dick’s can have a better asset turnover but a drastically worse return on total assets is because asset turnover excludes long-term investments but return on total assets includes them. This means that Nike has many more profitable long-term investments than Dick’s.
Business knowledge gained from financial statements and sheets, provide organizations like Ulta Beauty, Inc. adequate data that equips them when necessary information to budget for the company’s future success. By evaluating the performance of the business, long term and short term decisions are made to ensure a strong financial foundation. The methods utilized to analyze finances help managers and executives understand the importance of their decisions and how they impact the business financially.
Return on Equity increased from 4% to 23%, proving that Corning has a strong ability to generate profit and manage shareholders’ funds, while Return on Assets grew from 2% to 14%. The operating margin has improved from 21% to 18%, indicating the ability to generate increased profits. Asset turnover ratio has decreased, reflecting that the pressures from production capacity have lessened. The financial metric reveals that Corning has a strong ability to recover from debt, generate higher profits, grow and succeed
A comparison (Appendix B, Tables 5 and 6) of financial performance across fiscal years (FY) 2014 to 2016 offered greater insight into competitors Google and Microsoft. In terms of gross profit, both Google and Microsoft outperformed Apple in achieving near identical performance in retaining 61 cents for every dollar spent on selling inventory in 2016. Interestingly, all three firms achieved near consistent gross profit margins across FYs 2014-2016, although Apple’s gross profit margin was significantly less than Google and Microsoft. Comparable to the gross profit margin performance, Apple outclassed the competition in achieving a higher return on assets and kept 14 cents per dollar in assets from 2014 to 2016. In comparison, Google and Microsoft retained a smaller fraction of 11 and 8 cents per dollar in assets, respectively.
MANAGERIAL FINANCE– BA62070H522 COMPANY – Avery Dennison Corp RESIDENCY ASSIGNMENT DAY 2: GROUP PROJECT PART 1 – GROUP C Dr. Sunny Onyiri Members RIHEN EARNEST – 608038 TATSAT DIXIT – 599591 ROHIT CHELLAPPAN – 605785 Cover Page – Avery Dennison Corp is a global materials science and manufacturing company that provides a wide range of solutions for the retail, automotive, healthcare, and industrial markets. The company was founded in 1935 and has since grown into a leading provider of pressure-sensitive materials, labeling and packaging solutions, graphics and reflective materials, and RFID technologies. This paper provides an overview of Avery Dennison Corp's financial performance, business activities,
CanGo has a Return on Equity of 3.9% on their investment which further displays that CanGo is unable to utilize the investor’s money to generate a profit. The company is in a position in which they need to evaluate the current return, and to make a better use of the company’s resources to be able to provide better returns to the stakeholders of
Introduction The main objective of this particular case study is to assist Victor Dubinski, the current CEO of Blaine Kitchenware, decide whether or not repurchasing shares and changing the firm’s capital structure in favor of more debt could actually be benefit the company and its shareholders. Blaine Kitchenware is a small cap, public company who focuses on selling various different residential kitchen appliances. Up until this point, the company has only used cash and equity financing to acquire independent kitchen appliance manufacturers, and expand into foreign markets abroad. Given their excess cash and lack of debt, Blaine Kitchenware is considered to be “over-liquid and under-leveraged” (Luehrman & Heilprin, 2009).
The ROE is often seen as the primary measure of a company’s performance as it measures the profitability of shareholder equity by measuring how much the shareholders earned for their investment in the company and this tells common shareholders to know how effectively their money is being employed. The higher the ratio percentage, the more efficient management is in utilizing its equity base and the better return is to investors. However, the higher ROE does not necessarily mean better financial performance of the company. But rather, the higher ROE can be the result of high financial leverage, but too high financial leverage is dangerous for a company 's
Module 6 - Written Assignment: Corporate Bond vs Public Stock Case Study - Dottie's Grocery Anonymous Masters of Business Administration: University of the People BUS-5111 Financial Management Professor Dinesh Tandon May 18, 2023 Background: Dottie’s Grocery Chain company Dottie's Grocery chain is a local family business in the United States. They've grown from a single fresh fruit and vegetable store to a full-service grocery store chain over the span of 4 decades and is a notable company in the community. The only shareholders of Dottie's Grocery are made up of 7 shareholders who are all members of the family.
Kraft Heinz’s net profit margin shows a sharp increase in 2016 due to acquiring Heinz in 2015 and surpasses General Mills, who had double the percentage of Kraft in 2015. Gross profit percentage also shows Kraft overtaking General, but only slightly. The fixed asset turnover ratio for both companies is similar with Kraft’s at 4.01 and General Mills at 4.40, ultimately showing that General Mills has more effectively invested to generate more revenue than Kraft. Return on Equity show’s Kraft is struggling to create capital from investments compared to General Mills, Kraft’s ROE is 6.33 and General Mills is 34.99.