Why Invest in a DotCom Company - Research Paper Example

The New York Times boasts of a weekly newspaper circulation of about 1.3 million (Drexler, 2007). As a growing Dot.Com company, New York Times offers a great opportunity that every investor should think of investing in.
Now that we have the company’s profile, let’s turn our attention to the business segments of the New York Times.
The New York Times business segments
The New York Times operates in two divisions: The New York Times Media Group and the New England Media Group.
The New York Times Media Group: The New York Times Media Group comprises of the New York Times which is a daily and Sunday newspaper media house; the New York Times index which is a print publication and in addition producing and licensing the New York Times Index; the International Herald Tribune which is a daily Newspaper; NYTimes.com; Digital Archive Distribution business that is responsible for licensing electronic archive database to resellers of that information in the professional, business, and library markets (Drexler, 2007). The New York Times Media Group is also responsible and management of the New York Times News Services Division (New York Times (Firm), & In Claiborne 1966)
The New England Media Group: This segment of New York Times comprises BostonGlobe.com which is a paid subscription Web site; the Boston Globe which is a daily and Sunday newspaper. Boston.com is also part of the New England Media Group. Boston.com is a regional news and information website. In addition, the New England Media Group comprises the Worcester Telegram & Gazette which is a daily and Sunday newspaper and Telegram.com (BYERS, 2012). The New England Media Group sells advertisement through various channels that basically include digital, print, niche magazines, direct marketing and internet radio and events (Hitt, Ireland & Hoskisson, 2007).
The company has started in a strong financial background this 2014. This is because of a strong finish of the year 2013. The New York Times’ operating profit for the 3rd of 2013 before depreciation, severance and amortization was nearly $40 million. This represents a 35% increase from the same year 2012 which was $30 million (Verbeke, 2013). During the same quarter of 2013, the company increased overall revenue by 2% with the continued building of the digital scriber numbers and notable sequential improvement in print advertising revenue trends. The company’s revenue is over $2 billion (Verbeke, 2013). The company has realized tremendous growth in assets and profits for the past five years (Verbeke, 2013). According to many analysts, this trend is projected to continue for the next 3 years considering the company’s strong participation in the industry. The mean sale for the past five years is 160,163,000. The earning per share is $460 while the P/E for the last five years is 16.67 (Business Wire, 2013).
As per the 3rd quarter of 2013, the asset turnover of the company was 0.64 as compared to 0.47 of the industry. The company’s net profit margin was 7.93 while the pre-tax margin for the past 5 year averages 3.24 (Business Wire, 2013). The company’s quick ratio is 3.12 as compared to the industry’s 0.78. The current ratio is 3.14 while the total debt to equity ratio is 99.99. The company’s market capitalization is 21.8951 billion dollars (Verbeke, 2013). The company’s dividend is 1.09 while the return on investment for the past 5 years is 1.61.