Nobody downloaded yet

Report for potential investor - Essay Example

Comments (0) Cite this document
Summary
Before the onset of financial crises and economic slowdown, demand was high for the consumer goods and different departments were performing quite well with higher growth rate. But the crash of housing bubble in US disturbed economics of whole world and resulted in drastic fall…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
Report for potential investor
Read TextPreview

Extract of sample
"Report for potential investor"

Download file to see previous pages When the market will recover, companies with better fundamental state will be the one to come as market leaders and they will yield better results to the investors. So an investor should analyse any company comparison with the industry standards before taking any major decision. 3
It reflects how much of the company’s total assets are financed by debt or the degree of debt load used by the company. Higher ratio indicates higher riskiness of the company and can disturb company’s profitability when market conditions are unfavourable. The Gearing Ration of M&S for the past five years indicates that though it did not maintain any constant trend, but it was in a range of 25-40 percent. So it was found that the company’s Debt Ratio is not so very high. 17
This ratio measures the company’s ability to bear its financial burden which arises in form of interest to be paid for debt. This ratio is also known as times interest covered ratio. While calculating this ratio, analysts compare the company’s ability to pay the interest with the total interest payable on its debt, so higher ratio is an indicator of more stable state and less risk of default (Peterson & Fabozzi, 1999, p. 94). The Interest Coverage Ratio of M&S indicates it always has an Interest Cover Ratio greater than 1, or it can be expressed that it’s Earnings Before Interest and Tax (EBIT) was more than the interest payable. The company’s Interest Cover Ratio was constantly increasing, but due to financial downturn and economic slowdown throughout the world, this ratio declined in 2009 as profitability of the company declined. 18
So after undertaking all the efficiency ratios of M&S it can be said the company is maintaining higher debt structure in its capital and such financial leveraging is reducing company’s ability to retain meet long-term liabilities. But the good aspect is that the company’s Interest Coverage Ratio is at a comfortable state. 18
So it can be concluded that the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Report for potential investor Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Report for potential investor Essay Example | Topics and Well Written Essays - 3500 words. Retrieved from https://studentshare.org/miscellaneous/1559717-report-for-potential-investor
(Report for Potential Investor Essay Example | Topics and Well Written Essays - 3500 Words)
Report for Potential Investor Essay Example | Topics and Well Written Essays - 3500 Words. https://studentshare.org/miscellaneous/1559717-report-for-potential-investor.
“Report for Potential Investor Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.org/miscellaneous/1559717-report-for-potential-investor.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Investor Profile Paper
...? Investor Profile – Deducing the Debt [School] Number] November 24, Investor Profile Paper – Deducing the debt The essay analyses the debts taken by Home Depot. Debts Sources Home Depot has raised debts primarily from two sources: Senior Notes: A class of debt which has preference over subordinated debts in case of liquidation of the company (Dictionary). Home depot had raised close to $8,662 million in the year 31st January 2010 (Depot, 2010). Senior notes pays a very low interest rate and hence are a source of funds at cheaper rates for Home Depot for longer periods. Home Depot can pay it off any time it wants at a predecided rates with the lenders. The size of senior debts are generally of large value...
1 Pages(250 words)Essay
Report for Potential Investor
...”, Business7, Online, accessed on 5 June 2011) *The Company is reporting an EPS of 39.02p in 2011 after making adjustments (Annual Report 2011, Pg 80 Web Version) Price Earning Ratio: Calculated as the ratio of market price per share to earning per share. This Ratio has been taken from financial data as per London Stock Exchange Website (Robert Wiseman Dairies Fundamentals). P/E Ratio 9.10 10.80 10.20 13.20 14.20 P/E ratio indicates whether the stock is under or over valued in comparison to the earnings made available by it. It can also be interpreted as the the amount of money an investor is ready to spend in order to earn 1unit of earnings in money terms. Also, it can be seen as the...
7 Pages(1750 words)Assignment
Investor Proposal
...Investor proposal film Introduction Entertainment and film industry is currently becoming important. Most organizations dealing with film are reevaluating their own marketability and movie integrity for the purposes of attracting substantive returns. Various films have been marked worldwide hence grossing over fifty million dollars and winning academy awards. There is dire need for films and movies driven by story not budget within global market. Such expectations from the audience created unusual drive to bring suspenseful and beautiful thriller “American Beauty” film. The proposal seeks financing for independent feature film budgeting to close to $200. The film ‘American Beauty’ film acts as one of the most desired...
4 Pages(1000 words)Assignment
Segment reporting for investor
...___________ ____________ ____April 2006 Segment reporting for investor Introduction A segment by definition is a part. This paper would concentrate on a segment of a company as accepted in regulatory literature. A segment of a company is widely defined to be a part of the company that is carrying on business activities and which may or may not be earning revenues and/or incurring costs. Another condition which qualifies a part of a company as segment is that the chief executive of the company must periodically review the performance of this part in order to provide it a status of a segment. "Operating segments are components of a company for which separate financial information is available and is...
10 Pages(2500 words)Essay
Investor Sentiment Explanation
...Introduction Closed-end funds can serve as a perfect illustration for limitations of many theoretical assumptions. Concerns of many researchers fromUS and UK trying to explain closed-end funds, which differ from open-end funds with a fixed limited number of shares on the stock market, deserve serious attention. But before an explanation of closed-end fund phenomena from the behavioral perspective will be given, clear frames of the subject question should be defined. There are some differences and similarities between closed-end funds in the US and the UK. One of the most important differences is much greater participation of institutional investors in the UK market than in the US (Bleaney and Smith 2003, p. 19)....
5 Pages(1250 words)Essay
Investor Psychology and Return Predictability
...Running Head: MEAN-VARIANCE MODELS AND INVESTOR PSYCHOLOGY Investor Psychology and Return Predictability of the of the institution] Executive Summary The non-normality of asset returns is a well known empirical regularity. Many reasons can be provided why the distribution of returns is non-normal. For instance, because volatility change over time, or because rare yet extreme events occur. These extreme events generate higher moments that are different from the higher moments one would obtain with a Gaussian distribution. One may expect that an investor facing the small but non-zero probability of an extreme realization will not allocate his wealth in the same manner as an...
11 Pages(2750 words)Essay
Report to a potential investor, comparing and analyzing two companies' current and previous years group figures in the annual report for the year ended 2012
...Ltd involved in the retailing business in UK and other parts of the world. With a market share of over 16.5%, it is one of the leading chains in the market catering to the various needs of the customers. Tesco Ltd is the market leader in the retailing industry in UK with major share in the market. It is also the third largest retailer in the world in terms of revenue and has its operations outside United Kingdom also. Over the period of time, Tesco has served the diversified needs of its customers in UK as well as other global markets. This paper will evaluate the financial performance of Sainsbury Plc and Tesco Ltd for the year 2011 and 2012 and based on the evaluation would provide recommendations to the potential...
6 Pages(1500 words)Essay
IT for Investor Relation
...Business IT for Investor Relation Executive summary Comcast has employed web hosting and social media as the major technologiesin Investor Relations. Besides earning an improved brand perception from the investors, the company achieves a broader investor base that strengths its financial soundness. Despite outshining her competitors, the company’s website lacks email alert, video conferencing, and investor contacts feature in its IR website. Paying heed to these critical issues will ensure continued prosperity. Technological changes, changes in federal laws and the economic considerations, that come in hand, should be provided for appropriately. In the...
3 Pages(750 words)Essay
IT for Investor Relation
...visuals and statements that distort the consumer. In this regard, the key costs to be considered in terms of advertising include research and design team costs, printing costs for designed posters, cost of graphic designs for the visuals displayed in the website or over the posters and flyers. Annual Reports The importance of annual reports is that it is a tool applied by investors in the evaluation of the current physical, financial standing, objectives and report on any new developments of a company in general. Moreover, the annual reports serve as mode of written and formal communication. In light of Gap Inc.’s vision of continuous international...
4 Pages(1000 words)Assignment
Investor Protection
...Importance of the level of Investor Protection Importance of the level of Investor Protection Corporate governance often refers to the series of mechanisms that protect outside investors from expropriation by insiders (managers and controlling shareholders); investor protection is particularly essential to safeguard external investors’ return on investments. External investors often face a myriad of risks whenever they put their funds in firms, but key among them is expropriation by the controlling stockholders (Sun, 2009). The level of investor protection is extremely important for the development of a financial market...
3 Pages(750 words)Essay
sponsored ads
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.
Let us find you another Essay on topic Report for potential investor for FREE!
Contact Us