Company Report

You can use this workbook for analyzing many companies and saving your analysis for each one, like many professionals. Just like them, over time, you can compare a company’s actual performance to your analysis and predictions. Saving your analysis sheets can help sharpen you analytical skills.

While a budget might indicate that a specific government or agency has financial trouble and debt because of excess spending or mismanagement within the select grouping of general fund accounts presented, the CAFR may indicate, in whole, the same government entity, has many facets possessing large holdings considerably over what is shown in a budget report.

The second reason would be due to the ratio of rate of return on total assets, for the current year 2011 the company has a ratio of 6.1% and this is a low rate of return ratio because the company's net income declined by 79.20% compared to the previous year 2010. This also indicates the company is fragile because it measures how the company is using its assets to generate revenue.

When combining the figures for ROE, ROA and the DuPont analysis it appears that the company is using leverage favourably. ROE is greater than ROA and assets are greater than equity. This is a positive sign for shareholders as it suggests a good investment return in a company that is managing its shareholder equity well (Evans & McDowell, 2009).

When a company is growing so fast, it is a good idea to look at how it is paying for the growth. A good way to do that is by looking at the current ratio because it shows assets compared to liabilities. CMG’s current ratio over this time period has varied a good bit: 2013 = 3.34, 2014 = 3.5, and 2015 = 2.91. What stands out in that is the decrease in 2015 which could indicate issues with the company. However, after looking more in depth, it can be seen that this decrease is most likely related to the company’s fast growth in that year and its need to finance the growth. In addition, CMG’s

Sizeable Cash Flow 9% 3 0.27 6. Member Of ‘Seven Sister’ 12% 3 0.36 Internal weakness 1. Decreasing Market Capture 8% 1 0.08 2. Comparatively Low ROE

The unhealthy financial state of the company could be due to the split from the monopoly. Round 0 financial statements demonstrate last year’s results. The company should look into the future because there is room for growth and financial success. For instance, the company can decide to take long term debt to invest it back into the company. The company can also focus drastically on sales to increase their customer base and obtain a higher market share. If the company takes the right direction of growth, it will quickly become a healthier

Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before.

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

Overall, profit has decreased from 2008 to 2009. This shows the company has become less profitable compared to the previous year. Although above industry in most cases, Gemini Electronics has earned less revenue for its investors this year. Although not immediately concerning, if a decrease in profitability continues this will create problems in the future for Gemini and the company’s investors.

In any business operations, full financial disclosure refers to the provision of the necessary information about a company for better decision making by the people accustomed. It is the financial revelation of a given company. There are some financial disclosures in any business that ensure proper understanding of financial statements to the financial readers, or potential auditors. Examples are the annual financial reports and the financial declarations of the company. The annual financial reports of the enterprise are very useful since they discloses the revenues recognized in the business, and the accountability of the inventories plus the income taxes accounted for during that period of operation. Second, is the disclosure of this financial statements which gives the actual revelation of the company 's stock options, liabilities and the effects of foreign currencies?! This disclosure includes the company 's balance sheet of the year, income statements and also the cash statements flows of that year. This information gives a proper understanding of the financial status users about the effects of inflation and price change on property and inventories (Berger, 2011).

It’s noticeable how the company’s operations have been deteriorating as they are having a more difficult time translating sales into cash. Their A/R turnover is not where it needs to be, and in line with that, their liabilities are increasing as well. The company has also been inefficient with the use of their assets as their current activity ratios are not up to par with the industry standards.

My company is a small corporation that is in its first year of existence and is located in Denver Colorado. Our product is the first pair of winter boots that uses innovative technology to keep your feet warm. Our boots instantly react to weather outside and heat your feet at a temperature controlled by the user. The soles of our boots are insulated so it is guaranteed to keep water out. Our company has also made a smart phone application because inside the boots are microchips that control the temperature, so at any moment you can pull up the application on your Smartphone and pick a temperature to your liking. Our product has the opportunity to reach the same popularity as companies like Timberland and Uggs because not one other company has came up with this idea.

Based on the financial ratios given, this section will compare and contrast the financial strengths of Company X and Company Y in order to suggest Tringale Ltd to take decision regarding which of the above companies to chose for investment. This section provides comments on financial performance areas based on the data given, and presents report to the Board of Directors of Tringale Ltd by recommending which of the two investment opportunities is better.