Figure 2 Current Ratio among Industry Peers Source: McGraw-Hill Financial (2015d)
Debt
As shown in Table 4, all social media companies had low levels of long term debt given the companies were all new companies. A measure to utilize is cost of debt. LinkedIn had the second most debt among industry peers, but ranked first in terms of the lowest cost of debt. Facebook had the least amount of long term debt, but the highest cost of debt to obtain additional long term debt. Cost of debt was utilized since it was a comparable measure to use versus debt ratio.
Table 4 Debt Management Items
Company Int Exp LT Debt Cost of Debt
Facebook $7 $113.00 6.19%
LinkedIn $6 $1,092.70 0.55%
Twitter $60 $1,600.80 3.75% Source: Napoli (2015d)
Market Value In terms of market performance, the companies ranked in order are Facebook, LinkedIn, and Twitter as show in Figure 5. Facebook had the largest market capitalization and ranked first in all categories. Despite a second place ranking, LinkedIn had the highest stock price per share. Investors were willing to pay more per share for LinkedIn and had promising prospects for the company. Twitter had ranked third in all categories. Price to earnings ratio would be a consideration as a measure for market valuation, however the measure was not meaningful to mention in the analysis. With the market valuation measures, the companies are ranked and placed in the social media industry in the U.S.
Table 5 Market Valuation Items
Company Market
Social networking connects individuals, businesses and organizations. “Social networks are the foundation of the social media because every form of social media is based on participation from a community of members” (Tuten, 2015, pg. 142). Social networking has a major impact on an organization’s marketing, products and or services. It provides the opportunity to expand businesses and communicate with their potential and current clients. Facebook, Instagram, Twitter and Pinterest are the top four social media platforms used in order to market organizations, their products or services.
It is interesting how social media today is influencing the marketing role of many companies and how it’s playing a big role in their success. The more the company advertises on social media, the
Through their websites, many other companies are incorporating Social Media. Alone in 2010 there have been 2.5 million websites of companies that have incorporated themselves with Facebook. And now so many more companies are also choosing LinkedIn to employee the most brilliant people. The “fastest
Kaiser Permanente, one of the nation’s largest healthcare providers, is using the most popular social networking sites; twitters, Facebook, LinkedIn to grow its positive media presence and create a competitive advantage over other healthcare companies. According to Vince Golla, Director of digital Media and Syndication, “Social media tools, specifically Twitter has exponentially increased our position in the world of innovation.”
Industry averages and financial ratio reports determine the financial health of an organization. Solvent, efficiency, and profitability are compared by key financial indicators and ratios that measure several companies within the same industry. The publicly traded company chosen by Team A is ExxonMobil. “The largest publicly traded international oil and gas company in the world. ExxonMobil makes products that drive modern transportation, power cities, lubricate industry, and provide petrochemical building blocks that lead to
| 2.1-Microsoft: alliance in advertising to reduce competition(41)2.2-Beating Google, Twitter & MySpace through capability of strong innovation and R&D(5)2.3-Launching new products & applications: more advanced & higher speed than rivals(19,20)2.4-Building barriers to entry & switching costs: establishing strong relationships, partnerships, strategic alliances such as with Microsoft for advertising & Skype for video chat(21,22)2.5-Talent acquisition by recruiting from competitors: David Fisher from Google(42)2.6-Facebook Platforms: tools for companies’ development(43,44)
For technology, we looked at two factors which consist of social media and smartphones. The industry has started to advertise social media and smartphones to try to get customer interactions. According to industryweek.com, social media has been a highly sensitive area for life science companies, which are often bounded by strict marketing and FDA regulation. Drug maker Sanofi has emerged as a social media leader by building a facebook community for diabetes sufferers who connect online to share their experiences with the disease.
Debt ratio- The higher this ratio, the more leveraged the company and the greater its financial risk. As with the previous ratios Chubb comes out ahead with PHLY in the middle and Travelers having the higher of the
Our report includes an assessment of current top social media platforms, benefits, monitoring strategies, organizational approaches, costs and their forecasted impact on the growth of our products and services.
The purpose of this company analysis is to discover why one company would be better to invest in over the other. The analysis is based on two competing companies within the same industry. While these two companies compare in products and services, they do not relate in overall size. To assist in making an educating decision, many areas of each company were looked at. A comprehensive financial ratio analysis was completed for each company, as well as an evaluation of their strengths, weaknesses and future opportunities. While it is important to consider how a company manages its finances, it is equally important to consider its future prospects as well. Below you will find a brief description of each company, and an
In this day and age, social media has become an integral part of our lives. It has created a platform for people to share information instantly and communicate with people all around the world. Facebook is the most outstanding example of successful social media network. According to the first quarter 2015 earnings announcement by Facebook, the site has achieved 1.44 billion active users per month, and 65% of which are daily active users. Other social networking sites such as Twitter, Instagram and LinkedIn are also a powerful means of communication. With such a large audience, social networking sites provide ample opportunities to acquire information, network, and connect with friends.
Just three years ago, Facebook was the number one company to work for in the United States according to Glassdoor’s annual best places to work list. This year, Facebook slipped a few spots to the number five position. The list is prestigious because it determined by the most qualified judges, employees. Half a million employees are surveyed every year and feedback covers overall satisfaction, career opportunities, compensation and benefits, work-life balance, senior management, culture, and values. Google and Apple both rank on the list year with Google landing at number eight and Apple at number twenty-five. All three have claimed the top spot in the past. Another list the site presents is the Highest Rated CEOs which has Google’s Larry Page at the top with a 97% approval rating and Facebook’s Mark Zukerburg at number four with at 95% approval rating.
Links to the specific social media pages for each company have been provided on row 8 as requested. In some cases, the social media platform in question provides only round numbers and in others it provides an exact count; we have not attempted to round off or normalize the available data in any way.
To the average technologically advanced American, Twitter is one of the most visited social media sites. From a popularity contest standpoint, Twitter would be amongst the top winners; however, when evaluating Twitter from a business analytical aspect it might not be a lucrative business venture. The attractive attribute to Twitter Inc. is the fact the sites does not make any of its users pay. Twitter is designed to allow users to voice multiple thoughts, ideas, or share different information amongst the site’s visitor. Unlike Facebook, Twitters does not have multi-million dollar corporations using the site on a regular basis to market more potential users. Therefore, with a low revenue base and poor strategic development implementation
The following report has been prepared for K Chapman, to evaluate the financial status of the business. K Chapman is looking to expand within the business. K Chapman has applied to be granted a loan from the Commonwealth Bank. The businesses performance has to meet the industry averages. Ratios and current performance will be evaluated and advice will be given on how this business will be able to improve. A final decision will be made to decide