Choosing The Best Company To Invest In

3325 words - 13 pages

Before reading any background information in this module, I looked at the case assignment. The question asked, "Which of these three companies, Yahoo, Coke, or Microsoft, do I think would be the best investment. Since my last research paper was on the Coca Cola company (located here in Atlanta), I knew of its history and the fact that the company has paid out dividends to their stockholders every year for the past forty-two years. The company also posts a $3.53 billion net profit with very little debt.Although this was the only company I had any real concrete information (pre-research) on, I was still torn between Coke and Microsoft as being the best investment. Really, is there anyone who doesn't know about Microsoft or Bill Gates? The name Microsoft alone carries a lot of weight. They are known as the computer giant monopolizing the IT industry. While I wanted to choose Coke I knew that Microsoft was too big not to invest in.Again, prior to doing any research, I pulled down the Income statements for each company and the financial graph for the last two years. Had I chosen the company on the graphs alone, Yahoo looked the best. Their graph did nothing but move upwards while Coke and Microsoft had a series of jagged ups and downs. Regardless, I looked at the income statements for the past three years and calculated the percentage of net income to their Total Revenue per year. 2004 2003 2002Microsoft 22% 31% 27%Coke 22% 20% 15%Yahoo 23% 14% 04%As you can see (and to my surprise), Microsoft dropped tremendously from the year prior. Coke has remained steady and Yahoo is showing massive movement. Obviously, after seeing this, I chose Yahoo to invest in.Now--time to actually read the module and applythe concepts and techniques.One hour later...I learned a lot more about analyzing the companies! I broke it down in a table below. 2004 2003 2002 Current Asset Ratio Debt to Equity Ratio Profit Margin Current Asset Ratio Debt to Equity Ratio Profit Margin Current Asset Ratio Debt to Equity Ratio Profit MarginMicrosoft 4.7 4.2 3.8 EPS: 1.2 Coke 1.1 1.06 1. EPS: 2.02 Yahoo 3.46 2.4 2.3 EPS: 1.08 #1) Current Asset Ratio: Total current assets / current liabilities....

Find Another Essay On Choosing the best company to invest in

Choosing the Best IWB Holster Essay

926 words - 4 pages Choosing the Best IWB Holster Just as taking the time out to choose the right gun for you is important, it's just as important to choose the best IWB holster for your needs. IWB holsters or inside the waistband holsters provide users with a quick and easy way of carrying their firearms in a concealed manner in a position that is easy to draw from. There are numerous variables involved in selecting the right holster, but you can find a great IWB

Choosing the Best Tactical Flashlight Essay

1596 words - 7 pages Choosing the Best Tactical Flashlight One of the most important steps in self-defense and gun safety is knowing your target's location and what is beyond and in front of it. Not practicing this vital step can result in severe injury or even the accidental death of an innocent person. However, it can be extremely difficult to practice this in a dark area. That is why tactical flashlights have become so popular with gun owners. They're not only

Choosing The Best Acoustic Guitar for You

524 words - 2 pages Choosing the Best Acoustic Guitar for YouWith the virtually endless choices of acoustic guitars on the market today, it is no surprise that deciding on one can be a daunting task. This article has been designed to help ease the process by logically guiding you to the best possible acoustic guitar for your needs. The single most important factor to consider when buying an acoustic guitar is its ability to stay in tune. The primary function of an

Municipal Bonds - why to invest in them.

1299 words - 5 pages of sports facilities that do not provide tax benefits. One normally associates municipal bonds with the possible tax benefits they provide. When an investor purchases a municipal bond, their income(s) received are exempt from federal income taxes - and in some cases, state and local taxes, as well. One of the best ways to appreciate the tax-exempt advantage of a municipal security is to compare it to a comparable taxable investment. Here is a

Assess the challenges and opportunities facing foreign investors seeking to invest in China

2519 words - 10 pages rate of 25%, but the hi-tech company will still enjoy rate of 15%. The foreign investor need to consider that the rising operation costs which might decrease their completive advantage, and it will be a potential risk for foreign-invested firms currently in China and it will become a challenge for the foreign investors who want to invest in China, especially for cost-intensive industry.However, Chinese government does not change their determination

Green Appliances: Invest Now and Reap the Benefit in Years to Come

1794 words - 7 pages techniques. With the incentives of going green many consumers and contractors can benefits for choosing to go green. Wind turbines have started chopping the air in China and Europe has started using solar panels on rooftops (UN Environment Programme 2011). Thanks to those roof top solar panels, a 32% rise in green energy investments have resulted. The cost of green technology keeps decreasing as new technology is discovered. The outlook for future

Choosing the Best Dog Breed for Your Family

1573 words - 6 pages joy than a chore is necessary when asking: How much is that puppy in the window? “The American Kennel Club recognizes 150 different breeds of dogs and that number can soar to more than 400 if you count mixed breeds” (Sarah McCurdy). So how does a family decide on just one particular dog when there are so many different breeds? Understandably, picking the right pet dog for a family can require some research. When choosing a family dog one

Where and how to invest in Czech Republic?

519 words - 2 pages The Czech Republic is one of the most advanced country in eastern Europe. It has a strategic location in the center of Europe and it has recently known un unprecedented economic growth partly due to the large Foreign Direct Investment that has come into the country.The preparations of the Czech Republic for the accession to the European Union are entering their final phase these months. The country considers the prospect of EU membership as the

America Needs to Invest the Social Security Trust Fund

797 words - 3 pages America Needs to Invest the Social Security Trust Fund Our nation ensures social welfare through Social Security. However, the United States cannot ensure the welfare of its own welfare system. To save Social Security, Americans in general do not favor an increase in the payroll tax, a cut in benefits or an increase in the retirement age. Furthermore, Americans are relying upon Social Security as their sole source of income at increasingly

This is an argument to persuade the audience to invest their money into mutual funds....

1000 words - 4 pages when we are young is certainly true when dealing with financial matters.1.Kadie Bye's article "Investing Early Garners Huge Rewards for Students" recognizes that college students typically have insufficient funds to save (Bye, 2002).a. It may seem costly to invest now.b. The losses incurred by not investing until 10 years downthe road -- in terms of lost compounded interest -- nevercan be regained (Bye, 2002).2.To better help you see how

What is the best way to address obesity in America?

748 words - 3 pages What is the best way to address obesity in America?America has the largest number of obese people in the world. According to the Center for Disease control, "obesity in adults has increased by 60% within the past twenty years and obesity in children has tripled in the past thirty years (Doane, 2010)." So what is it that Americans are doing so differently than the rest of the world? Shouldn't one of the richest most technologically advanced

Similar Essays

Choosing The Best Stun Gun Essay

1350 words - 6 pages pulses will render the attacker paralyzed for a few moments. This allows the victim to escape unharmed to find help or call the authorities. There are many makes and models of stun gun to choose from, and choosing the best stun gun for your needs is important in maximizing your personal safety. Size Size is an important factor in choosing your stun gun. Stun guns can range in size from a garage door opener to a billy club. People with

Question: "The Best Way To Alleviate Poverty In Developing Nations Is For The Richer Countries To Invest Heavily In Them." Discuss This View.

1024 words - 4 pages countries to invest heavily in them." However, I disagree with this statement as I feel that the best way to alleviate poverty would be to get rid of all the corrupt governments and elect one which truly cares about its people. This is because without this, even if other countries invest, the poor will not be able to benefit much.Supporters of this argument state that the best way to alleviate poverty is through heavy investment by richer countries as

Choosing The Best Communication Channel Essay

2084 words - 8 pages Introduction to Choosing the Best Communication Channel The ideas and definitions presented are summarized from the textbook, Canadian Organizational Behavior, written by Steven L. McShane and Sandra L. Steen (McShane and Steen, 2012). Without understanding and using effective communication, a company would fall apart and be unable to survive. Communication is defined as, “the process by which information is transmitted and understood between

Choosing The Best Folding Knife Essay

1025 words - 5 pages Choosing the Best Folding Knife Many people firmly believe that you should never go anywhere without a handy folding knife. There's not doubt that folding knives can be extremely useful in both emergency situations and everyday occurrences, but you will need to know how to choose the best folding knife for your needs in order to ensure that it has durability, usability, a sharp blade and more. How Many Blades or Optional Tools? Knives some