A Comparative Analysis of the Profitability of Two Potential Equity Investments

Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit

$155M is the net revenue (profilt) per year which was found by dividing total revenue value of $1.2375B by 8 (i.e. $1.2375B/8)

Sales took the most percentage of total revenue. The revenue of sales increased gradually from $ 214,934 (in thousands) in 2010 to $ 260,832 in 2012 while the figure of royalties reduced gradually from $ 873 in 2010 to $ 681 in 2012 (in thousands). The revenue of other income increased from $ 1,286 to $ 1,325 during this period and then the figure decreased dramatically to $ 533 in the financial year 2012. In addition, in the financial year 2012, a new resource of revenue called membership was developed with the figure of $54.

Revenue for 2015 was $1,692,292 versus to $89,803 for 2014 and operating expenses for 2015 was $11,639,430 versus $6,900,310 for 2014. 2015 Net loss for 2015 was $12,069,466 versus $17,576,576 for 2014.

2. Gross Profit - L&L had gross profit (net sales less cost of sales) of $28 million in 2011 and $30.4 million in 2012; an increase of $2.4 million (8.6 % increase)

Best Buy, like many other companies caught in the global downturn, has all the signs of a small slowdown in both Net Income and Earnings per Share. Although still slight, over the past three years coming down from a high of in 2010, the steady decline in income and the increasing rise of Operating Expenses denote an area that needs to be addressed. (Best Buy Financials)

In this paper I will use the income statement and balance sheet to evaluate the financial performance of Lamar Swimwear, and the company’s worthiness as an investment. While just looking at a company’s financial report one is unable to see all of the details necessary to make a clear decision. Anything can look good on paper but if you scrutinize and analyze that paper you may be surprised at to what you may discover. Lamar Swimwear is one of those companies that looks like it may be flourishing within its industry until numbers are calculated. With the ratios that I will give within and throughout this paper it will allow you to see why Lamar Swimwear is not a good investment for a new partner to

Revenue represents the primary source of money received by the company from its customers for goods sold or services rendered by the company. As per the presented income statement, Vibrant Foods PLC revenue shows growth. By comparing Year 1 and Year 2, we can see that Vibrant Foods PLC had a better year in Year 2 than in Year 1. Specifically, the company had net sales of 4,075,522 in Year 2 compared to 3,288,908 in Year 1. In total, net sales for Vibrant Foods PLC increased by 786,614 between Year 1 and Year 2. The revenue growth over two years is 23.92%. Therefore the Company’s revenue shoed upward movement.

Founded by Henry Ford in 1903, the Ford company is the world’s fifth largest automaker in the world. Publicly traded and held on the New York Stock Exchange, Ford uses the symbol of “F” to identify itself (Motorsport.com, 2001). The purpose of this document is to investigate and determine if the Ford Motor Company is a good investment. I will further cover a financial analysis of Ford Motor Company, evaluate the businesses consolidated statements of income, balance sheet, statement of stockholders equity, and statement of cash flows, which this will confirm if my conclusion is correct (Investopedia, 2004b) .

Capital investment decisions that involve the purchase of items such as land, machinery, buildings, or equipment are among the most important decisions undertaken by the business manager. These decisions typically involve the commitment of large sums of money, and they will affect the business over a number of years. Furthermore, the funds to purchase a capital item must be paid out immediately, whereas the income or benefits accrue over time. Because the benefits are based on future events and the ability to foresee the future is imperfect, you should make a considerable effort to evaluate

The sales revenue over 60 months from 2011 to 2015 is placed in the table and graphs for easy reading.

Aurora’s financial performance from 1999 to 2002 was barren and discouraging. The financial ratios in the table above show a clear image of Aurora’s financial situation. It is obvious that Aurora has been facing economic pressures because of the business risks that arose from the intensive competition in the textile industry, which led to the decline in sale margins. Sales after 1999 quickly fell below standards, additionally, sales growth steadily declined at an average of 15.3% (-40% between 1999 and 2002). The company has failed to turn a profit for the past four years, although in 2002 Aurora showed a positive operating profit (See the table above). In order to conserve cash, Aurora was forced to closed several manufacturing operations. Profit margins, ROA, and ROE (which were always negative), and the asset turnover declined, indicating that Aurora has not contracted with assets as fast as the decline in sales. Furthermore, a snap shot into their inventory and accounts receivable indicate major signs of poor management as sales (outstanding) and days inventory have both significantly increased since 1999 (most of the firm’s current assets are account receivables and inventories). Raw material cost also reflect potential management issues, the net sales (as percentage) declined from 54.01% to 44.05%. Aurora needs to manage its expenses to generate profits overall.

In the short run, the firm can only change its variable input to change its output and profitability. In the long run, the company can indulge in R&D to reduce the cost of production. If it can innovate any cost effective method of production, then the firm can enjoy a cost advantage over the other firms.

“Equities are notoriously volatile investment, both in terms of the market as a whole and individually, and its prices are affected not only by fundamentals, but by external factors and market sentiments” (Conen, 2015).

Included in shortages are bad merchandise and theft. Merchandise margin represents merchandise gross profit as a percentage of merchandise sales. They do not include other gross profit from ancillary products and services in the calculation of merchandise gross profit.