Financial Report on John Deer

"It's the kind of company we are determined to become. Our goal is to build a business and an investment worthy of the quality products we make and the uncommonly dedicated people who make them." The growth of Deere & Company mirrors the growth of large-scale farming in the American Midwest but luckily, thanks to global expansion, the brand is not solely dependent on the declining US farming market. In the last ten years, Deere has built, acquired or formed joint ventures for on-site manufacturing in Germany, China, Brazil, India, South Africa, Finland, Sweden and Mexico. Meanwhile, Deere & Company hasn't abandoned its own community. The company contributed to the redevelopment of downtown Moline, Illinois, which had gone into a dilapidated period when manufacturers like Farmall, J.I. CASE, and Caterpiller went under or pulled out of the area in the recession of the 1980s, dealing a serious blow to the blue-collar work base of the Quad City area. Since the mid-90s, downtown Moline has begun a steady climb out of a decade of seediness and disrepair. With the help of Deere and its construction of the John Deere Commons and the John Deere Pavilion, which has an impressive display of antique farming equipment, an architectural and business renaissance of sorts has come to the downtown area along the river. One of the latest developments of Deere has been the creation

John Deere & Company manufactures and distributes agriculture equipment as well as a broad range of construction and forestry equipment. The company is partnered with FedEx in order to maintain the logistics flow involved with the company’s transactions. FedEx is responsible for providing outsourced transportation services to 11 Deere facilities across the US and Canada. The 11 Deere facilities have different service agreements with FedEx in terms of cost and service depending on the type of business unit.

"I will never put my name on a product that does not have the best that is in me." This is arguably the most famous quote made by Deere and that has stuck with the company for the last 175 years.

Several factors are driving Deer’s future revenue and earnings growth. First is the growing urbanization of the world’s population. With this growth demands for growth in infrastructure is needed. Roads and bridges need to be built to keep up with the urbanization shift. Second, is Deere’s vision in the future. While other company’s may be complicit with the product they produce, Deere looks to high-tech tractors as to the future of their product. Making air-conditioned cabs, acoustic insulation, computerized touchscreens and GPS standard in many models, Deere sets the standard in modern machinery (Better Investing, 2012). Currently John Deere has developed other innovations making operation easier. The JDlink gives remote access to

Starting out in Grand Detour, Illinois, as a blacksmith way back in 1837, John Deere got his start making steel plows to cut through the sticky Midwest prairie soil (History: Timeline & Inventions, 2016). One hundred and eighty years later, John Deere has become a multi-billion dollar company that has made an enormous impact on the agriculture business in the United States and around the world. Because of its significance, it is important for John Deere to model what a good company looks and acts like. This can be seen through John Deere’s charitable giving, technology policies, environmental policies, and customer service.

Deere and company is one of the largest corporation that manufactures agriculture and construction equipment worldwide. Popularly seen are the green farming tractors in the ‘5000, 7000 and 9000 series tractors’. Apart from manufacturing such products and parts in both the agricultural and construction sector, there are financial services as well as product support services provided by the company. It was founded in 1837 and is about 178 year old company, headquartered in Illinois, United States.

Supplier power. Deere managed to keep its other competitors from driving up the price because of suppliers pricing by building its own supply channels. In each of its six identified key regions Deere established manufacturing plants that supported its main production assembly line. For example Deere built plants across the U.S.A (Iowa, Illinois, North Dakota, Georgia, Louisiana, Missouri and Wisconsin) each plant designed to manufacture different parts. Also, Internationally Deere is strongly presented in different regions in the world in important markets like China in support of construction equipment, engines, and large farm equipment. Deere’s strategy is not to depend on external supplier in support of its equipment.

Earnings per share also known as net income per share is the amount of money generated by each individual share of stock if all the profits were to be allocated to the outstanding shares at the close of the year. It is a part of the company’s profit distributed to each outstanding share of common stock. These earnings per share show the company’s profitability. To calculate EPS we use the

Return on capital employed =Net profit percentage =Gross Profit percentage =Asset turnover = timesFixed Asset turnover = timesStock turnover period = daysDebtor's collection Period = daysCreditors payment period = daysCurrent Ratio = timesLiquidity Ratio =Gearing =Interest cover = timesEarning per share = £2,125/per shareDividend Yield =Dividend Cover = timesPrice Earning Ratio =Return on Equity =Return on Capital Employed: Profit calculated before interest and tax, divided by the difference between total assets and current liabilities. The ratio calculated shows the expansion that capital generates revenue (http://www.investorwords.com/5770/Return_on_Capital_Employed.html).

The P/E ratio (price-to-earnings ratio) of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation. P/E ratio shows current investor demand for a company share. P/E ratio has units of years. P/E is the most popular metric of stock analysis. The reciprocal of the PE ratio is known as the earnings yield.

What was the change in Nokia’s book value of equity from 2006 to 2007 according to Table 2.1? Does this imply that the market price of Nokia’s shares increased in 2007? Explain.

The Statement of Retained/ Owners ' Equity: We operate our firm through capital raised fromr shareholders investment over time in the our company by purchasing shares from the us. So our Retained earnings present the equal amount of income Allsop Enterprise has accumulated over time and can reinvest. We calculate

The price to earnings share ratio is a valuation ratio of a company 's current share price compared to its per-share earnings. For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95). (Investopedia, 2011)

This number tells you "what the company can do with what it 's got", i.e. how many dollars of earnings they derive from each dollar of assets they control. It 's a useful number for comparing competing companies in the same industry.

4. EPS equal to R.O 0.112 per share as recorded on third quarter of this year (30 Sept 2008).