Every Business
What does AMD's presentation of their financial information tell you about how they use financial information to inform investors? AMD is using their financial information to inform investors about the possible opportunities and challenges for the firm. This is designed to provide them with further guidance about future results (based upon non GAAP standards). When this happens, investors and analysts can make more informed decisions as to how these factors will impact earnings. ("2011 Annual Report," 2011) Evidence of this can be seen in the annual report. Inside this document, AMD disclosed how they were facing challenges and flat revenue growth. Yet, they also have the opportunity to increase these numbers from the Graphics and APU units with the CEO saying, "We executed well to our financial goals in 2011, and renewed our operational efficiency efforts implementing several initiatives to help reduce costs, streamline processes and speed time to market. While revenue was largely flat year-over-year, solid improvements in non-GAAP adjusted free cash flow allowed us to strategically reduce our debt by more than $200 million in principal value and strengthen our balance sheet. Further, we delivered non-GAAP net income in every quarter. We believe that consistent operational and financial performance will strengthen our ability to strategically invest in the areas of our business that will provide sustainable returns over the long-term. We shipped more
Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.
Two traditional approaches to fund programs are grants and donations. Grant funding is typically the largest revenue source for a human service organization. Vast arrays of different grants are available for funding purposes. The XYZ Corporation can utilize these funds from government private foundations. The second traditional fundraising method to fund programs is donations. Building a relationship with the community and having a confident CEO that will reach out for donations can impact the amount of donations your organization receives annually. The XYZ Corporation has a large clientele and therefore should be able to gain recognition within the community and gain donations.
In this research paper the authors want to express their thoughts by stating that how to them earnings reporting pertains to the discovery of information that has not been disclosed by either people or other types of sources and focus towards the negative in this study. In my opinion, the title of the paper itself could have had a different title only because throughout the paper it analyzes negative or bad news rather than really paying attention to both perspectives. Also the paper captures the information or news that occurs by using a three day window in which Quarterly Earnings Announcement (QEA) take place and compares it to a period where it does not take place. Furthermore, in this paper there are three hypotheses that arise
It is easy to forget that pouring money into a problem will not fix it unless revenue flows continue or are increased and expenses are controlled. Some of the easiest computations can be made with information retrieved from balance sheets and income statements provided by accountants. Ratios such as the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management expense ratio, fund-raising and expense ratio, and revenue and expense ratio can provide a picture of where a company stands now compared to where it was in past years and what may need to be done in the future.
Considering the financials of each company can be reviewed from year to year, a potential investor is able to research trends from year to year of whatever company they might want to invest in.
Recognized as being one of the top 34 degree-granting public research institutions that belongs to the prominent Association of American Universities, the University of Colorado (CU) prides itself on providing a lasting effect on its communities through “collaborative research, innovation and entrepreneurship” (para. 1). This university consists of a system of three other public, not-for-profit universities, which are the University of Colorado at Boulder, the University of Colorado Denver, and the University of Colorado at Colorado Springs.
(c) Write a report to the management of Intel. Your report should include an evaluation of short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, market measures, and a discussion of any quality of financial reporting issues. In addition, strengths and weaknesses should be identified, and your opinion of the investment potential and the creditworthiness of the firm should be conveyed to management.
There are several factors that guide the choice among debt financing and equity financing such as potential profitability, financial risk and voting control. Equity financing is a method used to obtain capital in order to finance operations, growth or expansion. Sources of equity financing are extremely important. Major sources of equity financial are Retained Earnings, sale of stock, and funds provided by venture capital firms. Profits that are kept and reinvested are called Retained earnings, which is a very attractive source fund due to the savings it provides to the entity by not paying the interests, dividends or underwriting fees related to issuing securities. This source of financing does not dilute ownership, but it
During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by
Corporate annual reports are important research tools that enable investors to keep current on the
Companies often are under pressure to meet or beat Wall Street earnings projections in order to increase stock prices and also to increase the value of stock options. Some resort to earnings management practices to artificially create desired results.
Why would companies choose to disclose Intellectual Capital information in the narrative sections of corporate annual reports?
Financial statements are frequently a key source of information for financial decisions and taking a look at Microsoft’s financial statements can help us decide certain things about the company. There are three different types of statements that will be discussed in this section. These include: the balance sheet, the income statement, and the statement of cash flows. They are discussed here in either the sense of quarterly or yearly statements and will be noted as so. All information has been derived from Yahoo Finance. (http://finance.yahoo.com)
The reason for this kind reporting is largely due to the nature of their main capital provider, the bank. The bank is not necessarily concerned with their positive future outlook, they are likely more concerned with their debt to income ratio, equity, and liabilities. This kind of accounting information gives a better estimate if the company will be able to sufficiently meet their new obligation in the form of bank financing.
Financial statements provide a view on the company’s financial changes within a specific reporting period and confirm its overall state. They give information such that they provide shareholders with a picture of how well the company is doing. These enable them to evaluate a stock’s worth and aid them in making stock-related decisions such as buying/selling/retaining which provide them further on the status of their return on investment. Additionally, they reflect how the shareholders’ money are invested, its outcome and effect to the company.