This website uses cookies to ensure you have the best experience. Learn more

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

Profit and Shareholder Wealth Comparison Essay

956 words - 4 pages General Electric and Tyco International are two conglomerates’ that use different business strategies that result in a difference of financial results. According to Encarta (2008), a conglomerate is described as a “corporation consisting of several unrelated firms whose merger increases and diversifies company assets. Such a merger reduces a company's dependence on a single product or service in the marketplace.” When a company is

Profit and Shareholder Wealth Comparison Paper

693 words - 3 pages General Electric and Tyco International are classifying as conglomerates with each approaching their business strategies differently resulting in different financial results. General Electric has pursued a conservative growth strategy by focusing on being the number one or number two in each industry where it competes as Tyco has pursued a very aggressive sales and earnings growth strategy through rapid, multiple acquisitions.According to the

Profit and Shareholder Wealth Comparison Paper

922 words - 4 pages Some companies become giants in the business world when classified as conglomerates. According to Investopedia.com (2007), a conglomerate is “a corporation that is made up of a number of different, seemingly unrelated businesses”. Two major companies such as General Electric (GE) and Tyco are classified as conglomerates. Analyzing the market-to-book ratios of the two companies will provide a measure of shareholder wealth. The ratios

Management Planning Document

963 words - 4 pages , while others thrive after contingency plans are used.This document will discuss the legal, ethical and social issues that Tyco International (Tyco) has faced and how those issues affected Tyco's management planning. Secondly, this document will attempt to analyze the factors that have influenced Tyco's strategic, tactical, operational and contingency planning.Tyco was founded in 1960 by Arthur J. Rosenburg Ph.D. and was supported through U.S

Management Planning Paper: Tyco International Ltd

1229 words - 5 pages departments and or divisions; these plans may range a period of months to more than a year (Allen, 1998). The objective being, that as departments meet or exceed their goals, it will help the overall company to close in on completing its goals.Take for example Tyco Healthcare Group, which is part of Tyco International Ltd, their healthcare products can be found in virtually every healthcare environment. In 2004 Tyco Health care was the biggest

Profit and Shareholder Wealth Comparison

878 words - 4 pages IntroductionThe concept of market-to-book ratios can be defined by a study of two contrasting strategies applied to maximize profits. General Electric Corporation has pursued a conservative growth strategy by focusing on being the best in each industry where it competes. Tyco International has focused on an aggressive strategy through rapid, multiple acquisitions.Market-to-book ratios reveal if a stock is overvalued or undervalued. If the ratio

Paper on business ethics of Dennis Kozlowski and Tyco fraud

1333 words - 5 pages the world, Tyco has more then 267,000 employees worldwide. With 267,000 employees it is extremely important to have a solid and strong top management. Any loophole or weakness within the board of directors would be disastrous and a major problem is inevitable.On Thursday September 11, Prosecutors indicted ex-Tyco International CEO Dennis Kozlowski, former CFO Mark Swartz, and ex-general counsel Mark Belnick on charges of looting the company of

Tyco Fraud

3507 words - 14 pages TYCO Contents3About TYCO 5The Fraud 6The Rise of TYCO 7The Fall of Tyco 2002 8Executive' lavish lives 10Discovery of the fraud 11Tyco investigation Timeline 12Charges laid: 13A different kind of corruption case 14Ethical and Legal issues at Tyco 15Theory Applicable: 16Rebuilding Tyco 18Lessons Learnt 19Conclusion About TYCOTyco International is a diversified, global company that provides vital products and services to customers in more than 60

Tyco International Ltd. Management Planning

1764 words - 7 pages Introduction and Tyco HistoryThis paper discusses the successful management planning of Tyco International Ltd. (Tyco) and the factors that influence the company strategic, tactical, operational and contingency planning. Founded in 1960 when Arthur J. Rosenberg, Ph.D. opened a research laboratory to perform experimental work for the government. Rosenberg incorporated the business as Tyco Laboratories in 1962. At this time the focus was changed

Critical Thinking Application

1272 words - 5 pages University of PhoenixMGT 330July 13, 2009Management PlanningTyco International is a global company based out of Waltham, Massachusetts. Tyco provides products and services to customers in more than 60 countries and employs more than 113,000 people. Tyco is composed of five segments of business within their organization: ADT Worldwide, Fire Protection Services, Safety Products, Flow Control and Electrical & Metal Products. Tyco's management

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

Similar Essays

Profit And Shareholder Wealth Comparison Paper: General Electric And Tyco

862 words - 3 pages General Electric and Tyco International are classified as conglomerates with each approaching their business strategies differently resulting in different financial results. General Electric has pursued a conservative growth strategy by focusing on being the number one or number two in each industry where it competes as Tyco has pursued a very aggressive sales and earnings growth strategy through rapid, multiple acquisitions.According to the

International Coastal Security Compared To U.S. Coastal Security

1173 words - 5 pages International Maritime Organization Security Standards Compared to United States Maritime SecurityOver the past thirty years the United States and other countries of trade have made a vow to abide by the rules of the International Convention for the Safety of life at Sea (SOLAS). These rules govern the operations and procedures of all maritime issues. Given the recent horrific incidents of terrorist acts, the vulnerability of maritime security

Variation: From An Ordinary Text To An International General Gimmick

770 words - 4 pages -shopping channel by electricity, and even some people holding the board of text on the street. Multiple advertise methods means the text is common, popular, and attractive to people. Many countries also use this text for their businesses, which helped an ordinary text become to an international general gimmick.

Analysis Of Skills Needed By International Managers Working With Virtual Global Teams, Compared To Traditional Team Building Skills Needed To Cope With Heterogeneous Groups From Within A Single...

2527 words - 10 pages Name : Daniel HensonStudent number: 1420911/1 Word count: 1984Title: Analysis of skills needed by international managers working with virtual global teams, compared to traditional team building skills needed to cope with heterogeneous groups from within a single culture.Analysis of skills needed by international managers working with virtual global teams, compared to traditional team building skills needed to cope with heterogeneous groups from