The Economic Analysis Of A Company

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The economic analysis of a company is a crucial part of determining the profits for the company owners and stakeholders. Currently medical device manufacturers like Medtronic are quite profitable, the baby boomers are growing older and the healthcare industry is thriving. However, there are other key figures that also help to determine how successful an organization like Medtronic will be. Such as: how much capital does the company invest in its processes, new product development, and production capability. These figures are important; a company can generate a greater return in these investments than the sale of stocks, bonds, or PPE. A reliable way to conduct an economic analysis of a company is to simply, “follow the money.” Decision…show more content…
Tax credits can range from investments or investment accounts that provide favorable tax treatment, to activities or transactions that lower taxable income (Investopedia, n.d.). These investments in improving operations should yield the following results: reduced costs, enhanced revenue, improve customer satisfaction, reduce financial risks, protect the company’s R.O.I. and retain employees. Annual Report and Significant Events According to the annual report Medtronic met its investors’ expectations. There were several important achievements for Medtronic in 2014, its acquisition of Covidien, the release of its Reveal LINQ insertable cardiac monitor, and the company increased its emerging markets revenue to 13% of its total revenue. Covidien is a medical device manufacturing company based in Ireland. Ireland offers American company’s like Medtronic huge tax incentives. The corporate tax rate in the U.S. is 39%. By acquiring Covidien and adopting an Irish address, analysts estimate Medtronic will save $20.5 billion dollars in taxes over the next several years! The release of the Reveal LINQ insertable cardiac monitor offers healthcare providers and patients serious advantages. It is 87% smaller than Medtronic’s previous device and it has been well received by the market. This potential value of the market has an estimated worth of $1 billion dollars. The increase in revenue from
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