Case Study Of Purchase Shares Of Ownership

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When selecting a company to purchase shares of ownership you should be aware of its history. PECO one of the oldest and largest utility companies in the United States began its origins in The Brush Electric Light Company of Philadelphia, which was formed in 1881. Formerly known as Philadelphia Electric Company, it was incorporated in 1902. In 1994, Philadelphia Electric Company changes its name to PECO Energy Company, and later became PECO. PECO merged with Unicom to create Exelon in 2000. Exelon has been the top-ranked electric and gas utility on the FORTUNE 500 every year since 2008. Exelon was named to Fortune magazine’s 2015 list of the “World’s Most Admired Companies.” Exelon was named to the Dow Jones Sustainability North…show more content…
As the goal of your portfolio is to provide an income for you, we must view the profitability of the company. The most current Operating Margin also known as the Profit Margin for Exelon is 15.60% which measures the percent of revenues remaining after paying all operating expenses. It is calculated as Operating Income divided by the Total Revenue, multiplied by 100. Operating Margin is a ratio used to measure a company 's operating efficiency. Operating margin suggests how much a company makes (before interest and taxes) on each dollar of sales. The higher a company’s Operating Margin is the better off the company is. Exelon most current Net Profit Margin also known as Return on Sales is 8.61%. This value is the Income after taxes divided by Total Revenue for the same period which is expressed as a percentage. This is the measure that businesses use to report their profitability. A company that is growing its net earnings or reducing its costs is said to be "improving. It’s expressed as the “bottom line.” The bottom line also refers to any actions that may increase or decrease net earnings or a company 's overall profit. To measure the Exelon’s bottom line you must have knowledge of their financial strength. The Quick Ratio measures a company’s ability to meet its short-term obligations with its most liquid assets. It measures the dollar amount of liquid assets available for each dollar of current liabilities. The
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