Comprehensive Analysis On The Profitability Of Companies

2150 words - 9 pages

BackgroundNow, with the development of economy, more and more different kinds of company come out, and competition of among enterprises becomes stronger. Therefore, that brings us to a critical problem facing anyone how can we know about profitability of companies. As a manager, it is urgent to study the profitability of company, and find out the gap with other companies, so as to improve the management system, and develop the competitiveness of enterprises. Moreover, as an investor, it is significant to research the profitability of different enterprises. It can help them choose the correct way for investment, and reduce risks. Generally speaking, under the slow economic growth of circumstances investors mainly focus on statement of assets and liabilities, because they preferentially consider whether enterprises can keep going or not. On the other way, in emerging market, they especially concentrate their attention on profit statement of enterprise that is profitability, because in that situation, they care about whether can find higher value in return in short time. Consequently, it is particularly important to analyze profitability of companies.The previous works in this area mostly analyze profitability by financial data, afterwards, some article on profitability come out gradually. Robyn Lawernce and John Kercsmar (1999) analyzed profitability of enterprise by financial statement; they created a basic frame for financial frame, which can be investors' reference. However, they did not analyze from non-financial factors. Mike Simonetto, Chuck Davenport, Robert Olsen (2004) focus on improving profitability from price execution. As one of the most important revenue and profitability improvement, useful price execution has been known. This article analyze profitability by product and customer contribution analysis, price band analysis, it did not involve financial analysis. Colin Beasty (2007) indicated that in order to improve profitability of companies, they have to develop management, especially customers and employees. It is important to achieve high performance, and market is also developed. However, they did not analyze profitability from financial factors. William Wiersema (2006) indicated that managers can use financial tools to improve business. By financial analysis, they are aware of problems, and it is a matter of drilling down to the correct ways. If managers get the correct information, they can make the solutions accessible. However, this article mainly focuses on financial analysis, so it also has some limitations.At present, there is not any impeccable methodology for analysis companies' profitability. Although there is a lot of relevant information, they have various problems. Some of them focus on financial index, and the others find the answer from development strategy of enterprise. I think they have many limitations on analysis profitability; they overlook the relationship between financial information and...

Find Another Essay On Comprehensive analysis on the Profitability of companies

Impact of Earnings Management on Firms Profitability in Pakistan

1016 words - 4 pages Abstract This study is an attempt to examine the impact of Earnings management on the profitability of the firms. Earnings management has emerged as a vital issue in recent past for the firms, investors, analysts and the capital markets for profitability manipulation. The study was conducted on the companies listed at Karachi Stock Exchange. The sample included 98 companies comprising different sectors and taking five year financial data from

Analysis of Lowe's Companies, Inc.

4830 words - 19 pages Analysis of Lowe's Companies, Inc. Introduction Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items

AGIL Analysis of Biotech Companies

1409 words - 6 pages , immunologic disorders and cancer.AGIL Analysis - CentocorIntegrationMore emphasis on Direct Sales and MarketingLow Cost ProductionTargeted Markets and ProductsHarmonization of processes and systems across all sites and R&D/ManufacturingTake advantage of the Johnson and Johnson umbrella to achieve goalsLatent ValuesEmployees (Johnson & Johnson Credo)Relationships with Customers/End Users (Doctors/Nurses) - (Johnson & Johnson Credo

The Comprehensive Effects of War

1407 words - 6 pages many effects on all people, both emotional and physical on both soldiers and civilians. No longer should flying bullets and bombs be seen as the only negative effects of war. War has a larger effect, and includes a psychological battle as much as it includes a physical battle. People must realize that the obvious effects of war, such as physical wounds to soldiers, are included in the comprehensive effects only as a small part of the damage that

The War on Pharmaceutical Companies

1186 words - 5 pages is because Pharmaceuticals are simply greedy and prey on victims that are in need of their products to survive. It makes it hard for large households on a budget to purchase drugs to keep healthy. The way pharmaceutical companies look at their clients is like this: It is a life or death situation for them so the customers have to buy it in order to survive. According to the annual Fortune 500 survey, the pharmaceutical industry, expectedly, made

A comprehensive look at the development of the computer programming language, focusing partially on C++.

1908 words - 8 pages Microsoft, Ebay, Intel - none of these companies could have been created if it weren't for the development of computer programming languages, especially the language of C++. The base of any computer program is the language that it was written with. There are several different computer languages that exist today; however, C++ is the most universally known and used. The specific intent of this paper is to recall the history and types of the

Financial Analysis of Alternatives to Different Companies

4433 words - 18 pages organizations on their own. The merger of America Online and Time Warner was designed to consolidate the media industry. The merger was a smart business move for America Online and Time Warner. America Online wanted to increase the value of company by buying Time Warner. In exchange, Time Warner and America Online exchanged stock within the companies. Like Lester Electronics, Inc., America Online wanted to be able to offer more services to the

Essay on Romanticism in Frankenstein ( by Mary Shelley), a comprehensive discussion of the novel

925 words - 4 pages A comprehensive discusion of the novel -Essay on Romanticism in FrankensteinAll literature is influenced by the time period in which it was written; whether it be war, poverty, or any other social trends. People tend to write commentaries of political events, or just describe the time period. Whether it is intentional or subconscious, an author can not help to include some aspects of the time period in which they are in. The Romantic Period had

Essay on Romanticism in Frankenstein ( by Mary Shelley), a comprehensive discussion of the novel

925 words - 4 pages A comprehensive discusion of the novel -Essay on Romanticism in FrankensteinAll literature is influenced by the time period in which it was written; whether it be war, poverty, or any other social trends. People tend to write commentaries of political events, or just describe the time period. Whether it is intentional or subconscious, an author can not help to include some aspects of the time period in which they are in. The Romantic Period had

Financial Ratio Analysis of two companies

3173 words - 13 pages financial report data from publicly available financial statements for the years 2000 and 2001. I have included these statements for your review in Appendix AAppendix B contains other measures of Sample Company's financial performance, as expressed in standard financial ratio analysis techniques using figures from the financial reports in Appendix A.Profitability of Sample CompanyFirst, let's look at the Return on Investment (ROI) for 2000 and

What are the History, Laws, Profitability and Social Responabilites to the Consumer of Advertising Hard Liquor on TV in the U.S.

2383 words - 10 pages 8 page essay single spaced, nicely organized,table of contents and bibliography! -WHAT ARE THE HISTORY, LAWS, PROFITABILITY, AND RESPONSIBILITES TO THE CONSUMER OF ADVERTISING HARD LIQUOR ON TV IN THE UNITED STATES?INTRODUCTIONPurposeThe goal of this report is to inform the reader of the recent events that prompted hard liquor advertising on TV. In addition, the laws associated with advertising across this media, as well as recent legislative

Similar Essays

Comparing Profitability: Companies: Nfx, Kmg And Burlington Using Roa, Roe And Other Ratios To Compare Profitability Of These Three Companies.

940 words - 4 pages that they sold some of their company's non core business operations. This gain of 1.3 billion dollars on the sale of a non core business operation should not be included in the calculation of their net income. In the case of Burlington they did not perceive to have any unusual items in their financial statement with regard to the calculation of net income. If you take these different unusual items out of the calculation of net income it would enhance the ability of comparing these different companies profit margins and, therefore, make the profitability across the companies more compatible to each other.

Case Analysis: Profitability Of Wendy's Chilli.

1656 words - 7 pages Dave Thomas, the founder of Wendy's restaurant, opened his first restaurant on November 15, 1969 in Columbus, Ohio. Dave was born in Atlantic City, New Jersey on July 2, 1932. He was adopted at six weeks old by Rex and Auleva Thomas. Dave moved from state to state with his father when his mother passed at the age of 5. At the age of 12, Dave obtained his first job at a restaurant in Knoxville. Thus, he began his love for the restaurant business

A Comprehensive Analysis Of The Rwandan Genocide To The Holocaust

1432 words - 6 pages Beginning on April 6, 1994, Hutus began a mass slaughtering of the Tutsis in the African country of Rwanda. This mass slaughtering is labeled as genocide, the deliberate obliteration of an ethnic, racial, religious, or political group. The Rwandan genocide lasted 100 days while other countries stood idly by and watched the brutal killings continue. The hatred against the Tutsis began after the RPF invasion in October of 1990. Accusations

Strategic Business Analysis. Considering The Potential Acquisition’s Profitability Of The United Biscuits By The Finsbury Food Group.

2753 words - 11 pages Untitled The aim of this assignment is to consider the potential acquisition's profitability of the United Biscuits by the Finsbury Food Group. Finsbury Food Group is one of the leading UK manufacturers of cakes and breads. The company's aim is to build a bakery business operating in the growing sectors of large markets to generate profitable growth for customers. The focus is to support two key consumer trends- health and