We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Explain the changes in revenue and profit of your company that have occurred in recent years - Essay Example

Comments (0)
FINANCIAL ANALYSIS ON REVENUE AND PROFITS Name: Tutor: Course: Date: Introduction In order to fully understand the basic commercial essentials of an organization, it is appropriate to conduct an objective fundamental analysis. This process entails evaluating financial elements of an organization in order to ascertain the overall financial health of that organization within a surrounding business environment…
Download full paper
Explain the changes in revenue and profit of your company that have occurred in recent years
Read TextPreview

Extract of sample
Explain the changes in revenue and profit of your company that have occurred in recent years

Download file to see previous pages... Based on the fact that the analysis serves the purpose of portraying financial health of a company, it means that we will focus on aspects of earnings. In this context, the two aspects which show earnings of an organization are revenue and profits. Paul and Krishna (2008) says that companies report earnings in terms of revenue and profit on a periodic basis. Through these earning reports, one can objectively know how much money a company makes, and predict corresponding amount of money that it will make in the foreseeable future. At this juncture, we will focus on a real company, ITV plc, which seeks to deliver growth through transformation of business strategies. ITV plc is a media company within the television broadcasting sector of communication industry. It deals with airing of news, advertisements and online broadcasting. In 2010, ITV adopted a transformation strategy meant to boost its financial status within a competitive business environment. This strategy strives to establish a balanced performance in all subsectors of the company’s business, including TV studios, Pay and Interactive business and online broadcasting. ITV wants to reap heavily from increasing opportunities resulting from changes in consumer behavior. Improvement attributed to adoption of the transformation plan can be seen through the company’s revenue and profit trends. Supposedly, ITV plc admits that its transformation has contributed significantly to increase in its financial performance, which has continually enabled the company to post double digit earnings. At this juncture, preceding sections will involve dissecting ITV’s balance sheet and cash flow statements for the recent years since 2008. Changes in Revenue Fundamental analysis on ITV plc earnings will begin by acknowledging statistical figures of revenue for the past five years. In 2007, the company posted consolidated revenue of ?2,029 million. In 2008, total revenue generated from the different business sectors cumulated to ?2,082 million. In the two years, it emerges that TV broadcasting generates the largest revenue for the company, at ?1,652 million and ?1,750 million in 2008 and 2007 respectively. As at 31st December 2009, the company’s revenue dropped from ?2,350 million to ?1,879 million. Fortunately, 2010 came as relieve for the company after it posted improved revenue from TV studios and online broadcasting. In total, cumulative revenue for the company in 2010 stood at ?2,064 million, which is a substantial improvement compared to the 2009 figure of ?1,879 million. In succeeding years of 2011 and 2012, earnings generated from sales in form of revenue increased in a linear manner. In 2011, ITV plc had total revenue of ?2,140 followed by ?2,196 in 2012. Increase in revenue for these recent years is attributed to corresponding increase in sales within all business areas. In this regard, the figures posted above are true reflection of actuarial variations in revenue trends of ITV from 2007 to 2012. Changes in Profits Having appraised the revenue trend for ITV plc, it is not time to examine its profit patterns for the same period of five years. In this context, it is rationally assumed that tax rate for the five years remained consistent, thus profits considered will feature figures before tax. In 2007, ITV plc posted a before tax profit ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Consider the extent to which the theory of exchange rates explain the performance of the US$ in recent years
Exchange rate can be fixed or stretchy depending on the monetary policy and the set agreement between the countries taking part in the exchange. However, an exchange rate is said to be fixed when two nations or countries come into consensus to keep a fixed rate based on their monetary policy and regulations governing these countries.
16 Pages(4000 words)Essay
Company profit calculation
Part (b) TC = ?MC = ?(3 + 6Q + 3Q2) = 3Q + 3Q2 + Q3 + c At a production level of Q = 0, the cost of capital remains $3: 3 = 3(0) + 3(0)2 + (0)3 + c c = 3 ? TC = 3 + 3Q + 3Q2 + Q3 Part (c) At Q = 3: TC = 3 + 3(3) + 3(3)2 + (3)3 = $66 Part (d) Tr = p (q) at P = $48 and q = 3: = $144 Part (e) Profit = TR – Tc = 144 – 66 = $78 Part (f) atc = tc / q = (3 + 3Q + 3Q2 + Q3) / Q ATC’ = (3Q2 + 6Q + 3) / 3 – (Q3 + 3Q2 + 3Q + 3) / Q2 ATC’’ = (6Q + 6) / 3 – (6Q + 3) / Q2 + 2 / Q3 (3Q2 + 3Q + Q3 + 3) At ATC’ = 0: Q4 + Q3 – 2Q2 – 3Q – 3 = 0 ?
5 Pages(1250 words)Assignment
What key changes have occurred in Higher Education in UK in the past twenty years
What key changes have occurred in Higher Education in UK in the past twenty years? Higher education in UK has undergone a profound and fast change in the past twenty years. In the last twenty years, UK government’s policy has been proactive as manifested in education spheres of quality control, access, and finance.
7 Pages(1750 words)Essay
These changes lead to the development of country and given a different direction to the business and trade policies of the country. The starting of the changes was from the worker class. The worker class was basically consisted of people who were from abroad and villages of the country.
3 Pages(750 words)Essay
Changes in recent years to private health insurance
There are many Australian citizens who are not covered with private health insurance. The Australian Bureau of Statistics (ABS) stated that almost two-thirds or 64% of these
4 Pages(1000 words)Essay
Accounting for non-profit company
The background of the organization would be discussed including its mission and directorship. The core of this paper would however be the analysis of accounting for RI based on its latest financial results covering the financial period ending June
8 Pages(2000 words)Essay
Explain, with examples from recent years in the UK, the main reasons why a government taxes its citizens
Therefore, tax revenue collected is used to take on different government obligations such as paying its civil servants as well as construction of roads among many other government
2 Pages(500 words)Essay
Explain with recent examples from recent years in the UK, the main reasons why a government taxes it's citizens
For example, in the United States, the legal working age is sixteen years, which coincides with the issue of driving licenses (Torgler, 2007, 113). Whereas in the United Kingdom children as young as thirteen years start working. In every country,
3 Pages(750 words)Essay
1.How has the Information Revolution affected the way that enterprises operate or 2.The measurement of performance isan important management function.Making reference to behavioural issues,identify changes which have occurred in this area in recent years
Issues such as late order entries and shipping difficulties are slowly disappearing. In fact, now consumers expect rapid responses from their chosen suppliers. Glitches are no longer as tolerated as they were in
7 Pages(1750 words)Essay
Outline and assess the major changes to journalism over the past 40 years and explain the extent to which these changes have helped or hindered democracy
Yet, there is no second opinion on the fact that journalism indeed acts as a fourth pillar of the society i.e. it plays the role of watchdog and thereby keeps a check on the government. However, with
12 Pages(3000 words)Essay
Let us find you another Essay on topic Explain the changes in revenue and profit of your company that have occurred in recent years for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us