Financial Analysis Of Siriusxm 's Subscription Based Revenues Essay

* Sirius and XM, separate companies, began to compete in the satellite radio business in 2001 and 2002. Target market was car drivers and daily commuters who listened to their local radio stations that they preferred, but were limited to small service areas and less range and would lose frequency once out of that locality. Wall Street believed that satellite radio was the next opportunity in consumer electronics.

The gross profit margin for CC is right around the industry average. Although the numbers seems to be decent, the costs of goods sold are too high. Next, looking at the operating profit margin, the numbers don’t look as great as they should. The numbers are low compared to the industry average in years 2001, 2004, and 2005. This may indicate that CC should look into their prices and costs. In 2001 the net profit margin was very low compared to the industry average. I am assuming this is due to the major expansion. It is also important to look more deeply into the numbers though because the net profit margin is lower compared to the industry average in all of the years. Once again CC should look into their costs and how efficient they are converting sales into actual profit.

a few percent, in 2012 the gross profit margin is the highest it has ever been

Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by its

The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by

The Gross Margin ratio represents the percent of total sales revenue that TCI retains after incurring the direct costs associated with producing the goods and services sold by them. It helps us distinguish, as much as possible, between fixed and variable costs. With a 20%, 15%, or 10% projected increase in sales, for 1996, we calculated TCI’s GM ratio to be 41.85% , and in 1997 to be 41.84%. This means that around 42% of TCI’s sales dollar is available to pay for fixed costs, like its potential long-term debt to MidBank, and to add to profits.

Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by

Excellent equity position: $820 Million cash on books so they are well positioned for growth.

Comcast Corporation, based in Philadelphia, Pennsylvania, is the largest cable company in the United States. Comcast develops broadband cable networks and are involved in electronic retailing and television programming content.

$10,644,800 / $2,271,400 = 4.69 Times Return on Common Stockholders’ Equity (2002) $647,645 / $1,928,960 = 33.58% Return

According to Stafford and Heilprin, “American Cable Communications (ACC) was one of the largest cable operators in the United States (AirThread Case).” ACC serviced roughly 24.1 million video subscribers, 13.2 million high-speed internet subscribers, and 4.6 million landline telephony subscribers. In 2007, ACC saw revenues of $30.9 billion and had net income equaling $2.6 billion. In order to adapt to the changes in the industry, ACC started aggressively acquiring smaller companies, which resulted in huge customer growth and the development of, “a strong corporate finance team with significant acumen in identifying, valuing, structuring, and executing corporate control transaction (AirThread Case).” That being said, ACC has set its sights on yet another company--AirThread Connections--with the expectation of further revenue growth and customer acquisition and retention.

Sirius XM also proves that it can, for the most part, meet its short-term obligations by boasting a current ratio of 0.79. Sirius XM’s current ratio is relatively low because of its strong operating cash flow (over 800M). Just like the debt to equity ratio, this low current ratio can also mean a higher return on assets for Sirius XM. It should however be noted that, when I calculated the quick ratio, I took into account the quick ratio with accounts receivable (0.78) and without accounts receivable (0.32).

While analyzing AT& T a few differences are noted. As with Verizon, the current ratio did improve with an increase of five percent from 58% in 2005 to 63% in 2006. However, even though debt to equity decreased for both companies AT & T's decrease was only 4% compared to Verizon's significant decrease of 23%. The net profit margin ratio did opposite changes between the two companies while Verizon's increase not even one full percent AT &T's decreased by almost 3%. Even with these significant changes AT & T's price to earnings, as of 2006, was at 20.89 (www.hoovers.com). These variances tell us a couple of things. First, that AT& T has taken on more debt in 2006 versus 2005, but along with that debt they have been able to increase their net profit margin, helping the company in the way of earnings. The strong price to earnings ratio of 20.89 also shows that the shareholders are not faring too poorly either.

Founder and CEO Jeff Bezos opened the virtual doors of Amazon.com's online store in July 1995. The company was incorporated in 1994 in the state of Washington and reincorporated in 1996 in Delaware. The Company's principal corporate offices are located in Seattle, Washington. Amazon.com completed its initial public offering in May 1997, and its common stock is listed on the NASDAQ National Market under the ticker symbol AMZN. Amazon.com's fiscal year is based on the calendar year, and the last day of the fiscal year is December 31. The closing stock selling price for February 1, 2006 was $43.98. Amazon has never declared or paid cash dividends on its common

Net Profit Margin- The net profit margin of 18.34 percent for 2008 indicates that 18.34 cents of net income was generated for each dollar of sales. The significant increase of 7.83 percent, from 2007’s 10.51 percent, yielded an additional $1.84 billion in profit on the company’s $23.52 billion in revenue.