Ramirez Guzman-Week 4-Summative Assessment-Financial Market Shareholder Analysis
docx
keyboard_arrow_up
School
University of Phoenix *
*We aren’t endorsed by this school
Course
MBA
Subject
Finance
Date
Jan 9, 2024
Type
docx
Pages
5
Uploaded by SargentTeam8460
FINANCIAL MARKET SHAREHOLDER ANALYSIS 1
Summative Assessment: Financial Market Shareholder Analysis
Marisela Ramirez Guzman
FIN/571: Corporate Finance
University of Phoenix
Professor: David Tucker
October 30
th
, 2023
FINANCIAL MARKET SHAREHOLDER ANALYSIS 2
Financial Market Shareholder Analysis
General Electric, Co. General Electric Company, also known as GE, is an organization that is considered a strong franchise that is leading positions in growth in critical sectors by investing in innovation to solve customer needs at a global level. Also, GE concentrates on developing close customer relationships, growing installed bases, and essential services to continue developing sustainable financial performance, revenue increase, margin expansion and earnings growth.
GE maintains a solid balance sheet & cash of position that supports a greater capital deployment for organic and inorganic growth. By implementing a plan to create three companies
a natural evolution, the organization can be positioned to a full potential. (GE, 2022)
GE has been in business for more than 100-year run. Unfortunately, in 2008, the organization had a financial crisis that led to a new way of diversification by incorporating 3 different branches of innovation making the organization a diversified conglomerate and stock-
marker winner, while creating a focus on short-term performance and financial engineering. (Hansen, 2022).
GE continued with a rapid decline during the Great Recession. This caused the drop of the last original component of the DJIA from the index, after years of bad performance and loss in revenue. In 2021, the organization announced plans of dividing into three independent companies that specialize in different areas of business which includes aircraft engines, medical equipment, and power turbines. (Hansen, 2022).
In 2020, the development of Covid-19 pandemic affected the share price by making the stock fall to $43.92, reflecting a 28- year low. GE’s aviation unit was the most affected area of the organization. The aircraft engines business generated $32.9 billion in revenue in 2019,
FINANCIAL MARKET SHAREHOLDER ANALYSIS 3
reflecting more than 34% of GE’s total. Even though the pandemic travel curbs affected the organization, the demand for aircraft engines and related maintenance increased. The aviation sector started to be laying off 10% of its workers in March 2020. (Hansen, 2022).
In 2021, GE shares rose 9.3% during a possible global recovery. In May of the same year,
the organization announced an opportunity of merging its GE Capital aviation Services (GECAS) aircraft leasing unit with AerCap Holdings (AER), which was successfully completed in November of 2021. This transaction generated about $23 billion in cash proceeds in addition to a 46% stake in the new combined business (Hansen, 2022).
GE, in November 2021, announced a plan to separate into three independent public companies. One of the companies will concentrate on aviation business, the second one in medical equipment unit and the last one in power turbines business. The organization’s health care spinoff is planned to come out this year, which is 2023. In early 2024, the manufacture turbines for power plants and wind farms will separate with the idea of GE focus on its remaining aviation business. (Hansen, 2022).
General Electric share price fell more than 10% on April 26, 2022, to a 17-month low after the company warned fiscal 2022 annual earnings were leading toward the low end of the range that GE set for three months earlier due to inflation and other increasing issues. (Hansen, 2022).
In conclusion, even though GE has been economically struggling, it continues to grow in its three main business sectors, employing 175,000 workers around the world and operating in 130 countries. The issue is that its size is not working in its favor. In fact, breaking up will help, though GE investors should be aware of the risk of restructuring the organization. (Hansen, 2022). GE electric has demonstrated the ability of adapting and restructuring business based on
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
FINANCIAL MARKET SHAREHOLDER ANALYSIS 4
the consumers’ needs and industry demands; Therefore, GE is a good way of investing, but it may take a while to generate earnings. By splitting the organization again, GE can achieve financial health that is stable and has the ability of generating revenue. The organization has been
suffering from several issues, but it has demonstrated the ability to recover by changing its operations concentration.
FINANCIAL MARKET SHAREHOLDER ANALYSIS 5
References
GE, Company. (2022). GE2022 Company Overview. Retrieved from: https://www.ge.com/sites/default/files/ge-company-overview.pdf
Hansen, S. (2022) The Rise and Fall of General Electric (GE). Retrieved from: https://www.investopedia.com/insights/rise-and-fall-ge/
Yahoo Finance. (2023). General Electric Company (GE). Retrieved from: https://finance.yahoo.com/quote/GE?p=GE
Related Documents
Related Questions
37) In Walker's taxonomy identification with a company's annual financial results affecting all
employees company wide and measured on a scale of responsibility is called.
Stock ownership
Profit sharing
O Merit pay
O Team incentives
O Unit incentives
arrow_forward
Consider a large banking group with businesses in retail banking, equity trading, and mergers and acquisitions (M&A) advisory. Discuss its potential for creating value based on the possible underlying sources of competitive advantage for each of these three business areas
arrow_forward
The rise of the shareholder-value movement led to:
Large reinvestment of corporate profits into company infrastructure such as technology and new production facilities
Large-scale sales of company stock to outside investors
Profits via the global sale of goods and services
Large reinvestment of corporate profits into worker retraining and skill development
arrow_forward
None
arrow_forward
Question 6
is financing obtained from investment firms that specialize in financing small, high-
growth companies and receive an ownership interest and a voice in management in return
for their money.
Debt financing
Venture capital
Equity financing
Entrepreneurial capital
O Corporate stock financing
arrow_forward
Provide answer
arrow_forward
The goal of the firm is to maximize shareholder value. Today’s business environment is unprecedented of which COVID – 19 is but one example. How do you make it sustainable in today’s business landscape?
arrow_forward
please can you write more on this topic around 2000 words with some references please Rio Tinto's corporate governance, sustainability practices, and CSR activities in paragraph form, covering the critical evaluation required for your assignment:
Rio Tinto, a prominent global mining, and metals corporation operating across continents like Australia, North America, and Africa, has entrenched itself with robust corporate governance practices that underscore transparency, accountability, and ethical conduct. Central to its operational ethos are comprehensive CSR and sustainability policies integral to its overarching strategy. These policies emphasize environmental stewardship, community engagement, and responsible mining practices, aiming not only to comply with regulatory requirements but also to foster long-term sustainability. Rio Tinto's board structure reflects a commitment to diversity, comprising directors with varied expertise and a substantial degree of independence.…
arrow_forward
Analysis of Corporate Governance and Sustainability Report of Rio Tinto please write me based on following criteria
Objective: This research-based individual work aims to provide an analysis of a top 200 AGX listed company's latest (2023) about Rio Tinto Corporate Governance Report and Sustainability Report. In the absence of a Sustainability and Corporate Governance Report, the Company's Annual Report (2023) or Website Report can be used. The assignment requires critical evaluation of the company's corporate governance mechanisms and sustainability/CSR activities during and after the COVID-19 pandemic. The analysis must incorporate theoretical and practical implications of accounting on these COVID-19-related responses.
Specific Requirements need to be answered:
A brief background of the selected company's Corporate Governance and Corporate Social Responsibility (CSR)/sustainability policy and strategy. [ max-2 pages]
Critical evaluation of the company's corporate governance…
arrow_forward
Give me answer
arrow_forward
1. Multinational corporations
Why do companies go global?
Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries.
Consider the following case:
Saltwater Logistics Corp.'s domestic demand has matured and leveled off. Consequently, the firm is looking to expand its operations
overseas because it believes that its growth opportunities are more promising in foreign markets.
Which of the following best describes the reason Saltwater Logistics Corp. has decided to go global?
To seek production efficiency
To avoid political, trade, and regulatory hurdles
To broaden its markets
Now consider the case of Blue Box Crate Company. Many of Blue Box Crate Company's customers have expanded to India. Consequently, Blue Box
Crate Company has decided to expand its operations to India to better serve its customers. Blue Box Crate Company has decided to go global in order
to
arrow_forward
Identify the type of business strategy of The Boeing Company, mention below how its business strategy has improved the competitive advantage and describe five important opportunities for your future firm and describe also five threats, here opportunities and threats are related to competition, new products, new services, economic conditions, consumer preferences, costs, and international trade. Elaborate properly for each giving the fundamental reasons, find the relationship when you calculate the latest Sustainable Growth Rate or "g". \table[[Threats/Opportunities, "g" Calculation, Relationship,], [,, Reason,]] You must visit the SEC1OK of your firm and read the sections, business description and business environment, financial statements, and management discussions, and also NOTES to the consolidated financial statements.
arrow_forward
Give typing answer with explanation and conclusion
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage

Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Related Questions
- 37) In Walker's taxonomy identification with a company's annual financial results affecting all employees company wide and measured on a scale of responsibility is called. Stock ownership Profit sharing O Merit pay O Team incentives O Unit incentivesarrow_forwardConsider a large banking group with businesses in retail banking, equity trading, and mergers and acquisitions (M&A) advisory. Discuss its potential for creating value based on the possible underlying sources of competitive advantage for each of these three business areasarrow_forwardThe rise of the shareholder-value movement led to: Large reinvestment of corporate profits into company infrastructure such as technology and new production facilities Large-scale sales of company stock to outside investors Profits via the global sale of goods and services Large reinvestment of corporate profits into worker retraining and skill developmentarrow_forward
- Nonearrow_forwardQuestion 6 is financing obtained from investment firms that specialize in financing small, high- growth companies and receive an ownership interest and a voice in management in return for their money. Debt financing Venture capital Equity financing Entrepreneurial capital O Corporate stock financingarrow_forwardProvide answerarrow_forward
- The goal of the firm is to maximize shareholder value. Today’s business environment is unprecedented of which COVID – 19 is but one example. How do you make it sustainable in today’s business landscape?arrow_forwardplease can you write more on this topic around 2000 words with some references please Rio Tinto's corporate governance, sustainability practices, and CSR activities in paragraph form, covering the critical evaluation required for your assignment: Rio Tinto, a prominent global mining, and metals corporation operating across continents like Australia, North America, and Africa, has entrenched itself with robust corporate governance practices that underscore transparency, accountability, and ethical conduct. Central to its operational ethos are comprehensive CSR and sustainability policies integral to its overarching strategy. These policies emphasize environmental stewardship, community engagement, and responsible mining practices, aiming not only to comply with regulatory requirements but also to foster long-term sustainability. Rio Tinto's board structure reflects a commitment to diversity, comprising directors with varied expertise and a substantial degree of independence.…arrow_forwardAnalysis of Corporate Governance and Sustainability Report of Rio Tinto please write me based on following criteria Objective: This research-based individual work aims to provide an analysis of a top 200 AGX listed company's latest (2023) about Rio Tinto Corporate Governance Report and Sustainability Report. In the absence of a Sustainability and Corporate Governance Report, the Company's Annual Report (2023) or Website Report can be used. The assignment requires critical evaluation of the company's corporate governance mechanisms and sustainability/CSR activities during and after the COVID-19 pandemic. The analysis must incorporate theoretical and practical implications of accounting on these COVID-19-related responses. Specific Requirements need to be answered: A brief background of the selected company's Corporate Governance and Corporate Social Responsibility (CSR)/sustainability policy and strategy. [ max-2 pages] Critical evaluation of the company's corporate governance…arrow_forward
- Give me answerarrow_forward1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: Saltwater Logistics Corp.'s domestic demand has matured and leveled off. Consequently, the firm is looking to expand its operations overseas because it believes that its growth opportunities are more promising in foreign markets. Which of the following best describes the reason Saltwater Logistics Corp. has decided to go global? To seek production efficiency To avoid political, trade, and regulatory hurdles To broaden its markets Now consider the case of Blue Box Crate Company. Many of Blue Box Crate Company's customers have expanded to India. Consequently, Blue Box Crate Company has decided to expand its operations to India to better serve its customers. Blue Box Crate Company has decided to go global in order toarrow_forwardIdentify the type of business strategy of The Boeing Company, mention below how its business strategy has improved the competitive advantage and describe five important opportunities for your future firm and describe also five threats, here opportunities and threats are related to competition, new products, new services, economic conditions, consumer preferences, costs, and international trade. Elaborate properly for each giving the fundamental reasons, find the relationship when you calculate the latest Sustainable Growth Rate or "g". \table[[Threats/Opportunities, "g" Calculation, Relationship,], [,, Reason,]] You must visit the SEC1OK of your firm and read the sections, business description and business environment, financial statements, and management discussions, and also NOTES to the consolidated financial statements.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage

Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning