Tyco vs Ge

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Tyco versus General Electric Financial Analysis This paper will give a financial analysis of two corporate moguls: Tyco International and General Electric Corporation. Through thorough research of each company’s shareholder’s equity, preferred stock equity, market capitalization, net profit margins and other factors, this paper will review which company’s strategy has presented a greater risk to the shareholder’s investment. It will also determine whether the investors who are assuming the risk have been rewarded with a greater investment. To research this effectively, a few figures are necessary to be stated. To begin with each company’s shareholder’s equity needs to be determined. Tyco 's annual report listed that their…show more content…
Based on this information General Electric has done a much better job of maximizing profits. General Electric who did a much better job of maximizing profits and also achieved the greatest stockholder wealth maximization. Typically who ever has a greater risk usually has a greater investment return. In this case however, based on the facts, it seems that Tyco’s shareholder’s were presented a greater risk to them, but yet were not awarded with a greater investment. References: General Electric: Key Ratios. (2008) Retrieved electronically on April 18, 2008 from http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=ProfitMa rgins&Symbol=GE General Electric: Financial Statement (2008) Retrieved electronically on April 19, 2008 from http://moneycentral.msn.com/investor/invsub/results/statemnt. aspx?Symbol=GE General Electric 2007 Annual Report. (2007) Retrieved electronically on April 18, 2008 from http://www.ge.com/ar2007/pdf/ge_ar2007_financials.pdf General Electric Company GE. (2008) Retrieved electronically on April 18, 2008 from http://stocks.us.reuters.com/stocks/overview.asp?symbol=GE Tyco International 2007 Annual Report. (2007) Retrieved electronically on April 18, 2008 from http://library.corporate-ir.net/library/11/112/112348/items/

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