Capital Valuation Paper

a. Book value equals the $800,000 the founder of the firm has contributed in tangible assets. Market value equals the value of his patent plus the value of the production plant: $50,000,000 + $800,000 = $50,800,000.

Current Ratio: Current ratio helps the company assess its ability to use assets like cash, accounts receivable, inventory and the ability to pay short term liabilities as the accounts payable and wages. The ratio can be found by dividing the current assets /the current liabilities. Year 12 shows a ratio of 1.78 with year 11 a ratio of 1.86. Year 12 is down from year 11. The industry is 2.1 so year 12 has declined from the previous year and is near the lower quartile which means there is a weakness. There is a showing of declining trending.

As of February 17, 2017 at 4:29 PM EST the price of a stock was 45.12 US Dollars with a 2.28% drop of price. Then P/E Ratio is currently at 18.54 and with current Earnings per Share value of .411. The first issue is that the stock price has been dropping since 2014 and kept falling. In 2014, the price of stock was at 72.53

The third reason would be the book value for per share of common stock. Currently the company has a ratio of 3.30 compared to the previous year of 3.43. The decrease in the ratio denotes the company is in a less favorable status because it illustrates how much the stockholders would receive for their share of stock if the company would

Market value per share = Book value per share = $12,000 / 750 shares = $16 per share

Profitability measure earning ratio to the cost incurred and one of the formulas are the profit margin which looks at the net income / net sales. Amazon numbers for 2008 645/19166=3.37% and in 2007 476/14835= 3.21% this looks how sales at Amazons are converted into profit, the bottom line. Another is asset turnover and it deals with how Amazon uses it assets to generate sales and the formula is 19166/8314+6485/2=2.60 times it makes a sales for every dollar it had invested in assets for 2008. In 2007 14835/6485+4363/2=2.74 times these are very good number of asset turnovers. Return on assets deals with how profitable the company is and its formula is: 645/8314+6485/2= 8.71% for 2008 and in 2007 476/6485+4363/2= 8.78 % very profitable numbers. Return on Common Stockholders Equity is how much income is generated for the Stockholders and 645/1197+2675/2=.33 is generated for 2008 and 476/1197+476/2= 58.5 for 2007 and it was an excellent year for Stockholders . Earning per share is the net profit earned on each share of common stock. It reveals the amount the business earned on their stock share investments: 645/428+416/2=1.52 for 2008 and for 2007 476/416+414/2=1.15, is also good. Price ratio is a glimpse into the future of the company. Price Earning

This is the report I did on Kohl’s. The Financial Statements that I used were from January 31, 2015 and February 1, 2014.

In financial analysis, analysts use the financial data to monitor and evaluate a firm’s financial position, to plan the future financing, and to reallocate the size of the company and its rate of growth. Financial analysis involves examination of the historical data to achieve the information about the current and future the financial health of the company. They may work in the forecasting and profit analysis. They, like the accountants, prepare the reports. They prepare budget report, work in cost and general account. They analyze the changes in production and service to determine the effects on costs. They work on the graphs. They use statistic to compare the standard costs to the actual costs. They also study the significances of alternative ways of investing money in a particular field. They usually work for the large financial institutions. Particularly, they work

Cohen’s book value of equity is the total shareholder’s equity in the balance sheet, $3494.5. The market value of equity on the other hand, is $11427; computed using

As much as market cap measures to what’s related to the company’s equity value, a firm’s decision based on its capital structure estimates more significantly to how the value of that company is allocated not only for the return on equity but accounting for debt as well. Most economists would refer to capital structure as the mix of a company’s long-term debt, the current portion of it, and of common and preferred stock. Furthermore, large tech-companies today have been taking advantage of capital structure optimizations as it is placed shoulder to shoulder to increasing return on equity thus lowering weighted average costs of capital for long-term investment. In other words, it is how a corporate manager should base his/her decisions on financing the company’s assets and operations through various growth prospects and forecast estimates. We will begin to further evaluate the composition of Google’s capital structure by focusing on the company’s key statistics and research data from the selected top online providers of financial statements, including Google!

It istaking the company’s stock price and comparing it to its earnings, cash flow, or book value (Nishi &Doering, 2000).

The calculation of ratios is the calculation technique for analyzing a company’s financial performance that divides or standardize one accounting measure by another economically relevant measure. Financial ratios can be used as a tool to demonstrate financial statement users for making valid comparisons of firm operating performance, over time for the same firm and between comparable companies. External investors are mostly interested in gaining insights about a firm’s profitability, asset management, liquidity, and solvency.

Google Inc. is a multinational corporation that provides Internet-related products and services, including internet search, cloud computing, software and advertising technologies. Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Main Competitors Google Inc. Internet Worldwide U.S. Eric Schmidt and Larry Page $ 50.17billion(2012) $ 10.7billion(2012) 53,861 (2012) Apple Inc., Facebook Inc., Microsoft Corporation, Samsung Electronics Co., Ltd., International Business Machines Corporation and many others. Advertising revenues

In conclusion, Google is a sound investment that according to the analysis will continue to increase their profits and their dominance in the marketplace.

In this paper I’ll analyze the fundamental differences between the working capital structures and components for Google and Oracle, and speculate upon the main reasons why such differences exist; how each company could improve its working capital positions. As a Wall Street Analyst who has to recommend one of the companies as an investment to a company’s clients; based solely on that company’s working capital; as an Investment Banker who has to recommend loaning a substantial amount of capital to one company based solely on that company’s working capital.