General Electric Compared To Tyco International

721 words - 3 pages

General Electric and Tyco International are classified as conglomerates each approaching their business with a different strategy that generate different financial results. The results below for both GE and Tyco include common shareholders equity, market capitalization, net profits margins for the last 5 years, average net profit margin, market to book ratio along with net income and return on equity.$'s in billion(s) GE& - TYCOCommon shareholders Equity $109 $32Market Cap $377 $58Net profit Margins (Dec)2005 12.2% 8.1%2004 12.1% 7.7%2003 12.2% 2.6%2002 11.5% -8.2%2001 11.2% 11.5%Average net profit margin 11.8% 4.3%Market to book ratio 346% 181%Net Income $16 $3Return on equity 15% 9%In looking at both GE's and Tyco's market-to-book ratios along with the return on equity shows that General Electric has done a much better job of providing greater shareholder wealth. The Market Capitalization for General Electric is about 377 billion dollars with common shareholders equity of 109 billion dollars. When you divide Market Capitalization into common shareholders equity we arrive at 346% versus Tyco at 181%. The net income for General Electric is 16 billion versus Tyco at 3 billion. When the net income is divided by the common shareholders equity it shows that General Electric is able to provide a 15% return on equity compared to Tyco at 9% thus making GE more attractive. As an investor GE would be the company of choice when put up against Tyco since their percentage on return on equity is greater.The average net profit over 5 years for General Electric is 11.8% compared to 4.3% for Tyco. When compared over the last 5 years General Electric has performed consistently and for the most part since 2001 has increased Net profit margins slightly, but more importantly delivered them fairly consistently from 11.2 to 12.2. Tyco had a greater net profit margin in 2001 versus General Electric but since then has fluctuated greatly and never really made it back to the net profit margin achieved in 2001. Tyco went from a net profit margin in 2001 of 11.5% to 8.1% in 2005. Overall, General Electric has done a better job of maximizing profits and delivering consistent results.General Electric has achieved both the greatest...

Find Another Essay On General Electric Compared to Tyco International

Business Case Study - Lucent Technologies

1897 words - 8 pages Bell Labs. In addition to acquisitions and its own internal developments, Lucent has made several moves to diversify by streamlining its portfolio and sharpening its focus on the broadband and mobile Internet infrastructure. In December 2000, Lucent sold its Power Systems business to Tyco International. By September 2001, Lucent expects to spin off its microelectronics business, which includes the optoelectronics

Hybrid Vehicles Essay

2191 words - 9 pages lack of sensation, both tactile and auditory. The ability to artificially create the sensation of power controls and sounds are becoming readily available. The feelings are often compared to video games and science fiction movies as they are maintained virtually. The technical challenges that electric and hybrid cars face are part of the equation. Some supercar manufacturers, such as Lotus, spent time in recreating detail based on the previous

History of the Electric Vehicle

1600 words - 6 pages History of the Electric Vehicle The History of Development: In general the automobile was invented to transport people. Horses were the main mode of transportation and a self powered vehicle seemed to offer many benefits. We have looked at the automobile history and seen how this innovation occurred. The United States in the 19th century had been developing a very successful metal-working industry, which included firearms, sewing

Lincoln Electric

878 words - 4 pages by applying manufacturing control incentive systems to reduce costs and raise production managers saw the opportunity. Financial goals as well as production goals were not met. Unfortunately for LE, the results were dreadful and almost ruined them (Lincoln Electric, 2003). It was sometimes amazing how different people in other cultures behave for those who work in international business. Human instinct that 'deep inside' all people are the not

Organizational Structure at General Electric

1101 words - 4 pages allocating resources, and creating conditions so that people and things work together to achieve maximum success (Bateman & Snell, 2011). When a company is able to successfully organize each portion of their business, they will then be able to maintain a strong foundation. A company that has managed to be successful through its well use of organization is that of General Electric Company. They have what it is called a ‘flat’ structure in which everyone

Impact of Electric Vehicles

2585 words - 10 pages Administration’s International Energy Outlook (IEO) 2011 Reference case (EIA, 2011), the world’s total energy consumption is projected to increase by 53 percent from 2008 to 2030. In recent years, energy security is becoming a major concern in many jurisdictions with the increasing energy demand, rising energy costs and energy production and its supply issues (IEA, 2010). “Energy security can be defined as “the uninterrupted physical availability at a

General Electric Training Effectiveness

1118 words - 4 pages The Leadership Development GE-Style case study offers a glimpse in to the management and leadership training provided by General Electric to its seasoned executives (Kreitner, 2008). The history of General Electric dates back to the days of Thomas Edison, with the formal company forming in 1892 (GE, 2010). General Electric is a successful company, which spans a history of over a century of time. They have grown from a company primarily

The Diesel Hybrid Combustion Engine

1321 words - 5 pages to produce power at an efficient rate with little wear on the engine, this makes these engines ideal for hybrid integration. Hybrid integration takes a typical engine and combines it with an electric generator and motor, with the application of other electrical systems applied. Allowing the machinery to generate energy, with lower fuel consumption and cleaner emissions. Toyota is one of the leaders in the automobile hybrid

Mitsubishi Rayon Reduces Half the Time Required for Molding Carbon Fiber Prepreg, Targeting Auto Applications

2361 words - 9 pages is stronger by eight times compared with iron. It is being highlighted as a new easy-to-abandon and easy-to-procurable material suitable for auto, house electric appliances and building applications. The research at the team targets the development of technical application for automobiles. The R&D team estimates that replacing doors and interiors with BNF composite plastics for a 1.2ton class vehicle made a 120kg weight-reduction that is

A Greener Tomorrow

1421 words - 6 pages manufactures like General Motors and Nissan have developed all electric cars for the consumer market, which creates a new type of competition for Tesla Motors. This type of competition may be beneficial for Tesla however because it brings more attention to the all-electric car market and their advanced battery technology which is superior to its competitors. Tesla Motors recently received a 465 million dollar loan from the Department of Energy to open

General Electric and It's Social Response

1559 words - 6 pages up of five large business entities; Capital Finance, Consumer & Industrial, Energy Infrastructure, Technology, and Infrastructure. Together these "businesses" employ more than 300,000 employees worldwide. GE has had a place on the Dow Jones Industrial Average since its inception in 1896 and its stock is the most widely held in the world. This all goes to say that General Electric is a very well established, very large multinational company

Similar Essays

The Management Failure Of Tyco International

1402 words - 6 pages The Management Failure of Tyco International Tyco International was founded by Edward Breen in 1960 (Wikipedia, 2007). According to Wikipedia, (2007), Tyco International’s operational headquarters is located in Princeton, New Jersey, and employs 247,900 employees. Dennis Kozlowski became the CEO in 1992, leading with aggressiveness acquiring several other companies into the organization (Wikipedia, 2007). In 1999, after a stock split

Tyco's Turnaround Team Essay

1340 words - 5 pages had to suspend their judgment of others from the past, and attach their thoughts, opinions to their new identity by actively being engaged in forms of comprehensive and therapeutic listening, living their new ethical direction that was set from the new CEO Ed Breen (Palmer, Dunford, & Akin, 2009). To deal with the frustrations of the past, the Tyco turnaround team overcame their concerns and discernments regarding the way the previous

Business Analysis: Mattel

1213 words - 5 pages was running many other large businesses by 1980 including Ringling Bros.; Barnum & Bailey Circus; Western Publishing, the largest publisher of children books at that time; electric toy companies; and last but not least, intellivision video games A New Beginning (1987-92) With some large losses, Mattel, Inc. decided to appoint John W, Amerman chairman of international divison, and with this decision the division’s sales quadrupled and became

The History And Benefits Of Electric Cars

1527 words - 6 pages started to reappear because of the increasing concern about air pollution and a depleting supplies of petroleum. In the late 1970's and 1980's, manufactures started developing electric cars called hybrids. These cars have all the components of the electric cars plus an internal-combustion engine. In the late 1980's, one of the most e technologically advanced electric cars was the Sunraycer, developed by General Motors Corporation. This