Case Analysis Of Newell Rubbermaid ( Nyse )

1685 Words Jul 12th, 2015 7 Pages
Financial Condition

Newell Rubbermaid (NYSE: NWL), just like most organizations, took a large hit in the financial crisis of 2009, when in just 2008; the company recorded the highest revenue in recent years (Morningstar). As seen in the growth of the stock price over the past five years in Exhibit E, Newell has seen an increase in both sales and stock performance. In regards to performance, Newell has had a consistent current ratio of over 1.0, meaning they have enough market liquidity to cover their short-term debt obligations (Morningstar). Measuring the amount of risk that Newell can be used by analyzing the beta ratio, where "tells us how much systematic risk a particular asset has relative to an average asset" (Jordan, Dolvin, Miller, 2012, page 412). Newell has a beta of .91, showing that the company has a lower amount of systematic risk, however, meaning that they will have a lower expected return relative to the market (Jordan, Dolvin, Miller, 2012, page 412).

In regards to total revenue, Newell Rubbermaid has seen a consistent increase in total revenue over the past three years. As seen in Exhibit A, the total revenue has increased from $5.6 billion in 2013 to $5.72 billion in 2014 (Yahoo Finance). Compared to the consumer goods sector, more specifically the housewares & accessories industry, Newell has outpaced the industry, which had an industry average revenue of $5.6 billion in 2014 (Yahoo Finance). See Exhibits F and E for Newell Rubbermaid 's income…
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