SOUTHWEST AIRLINES CO. ANNUAL REPORT PROJECT MICHAEL HSUN BUS A.

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "SOUTHWEST AIRLINES CO. ANNUAL REPORT PROJECT MICHAEL HSUN BUS 210-00A. http://southwest.investorroom.com/download/2012+annual+report."

Transcription

1 SOUTHWEST AIRLINES CO. ANNUAL REPORT PROJECT MICHAEL HSUN BUS A

2 Introduction CEO: Gary C. Kelly Headquarters: Dallas, TX Ending date of latest fiscal year: 30, 2012 Dec Southwest Airlines provides scheduled air transportation services in the United States. It is the third largest airline in the United States by passenger carriage and operates using a low cost, point-to-point transit model. 97 destinations across 41 states, and six international Central American countries.

3 Audit Report Independent Auditors: Ernst & Young LLP of Dallas, Texas The financial statements presented fairly the consolidated financial position, results of operations, and cash flows of Southwest Airlines Co. in conformity with US generally accepted accounting principles.

4 Stock Market Information Most recent closing price: $ week range: $8.45 to $14.56 Dividend per share (last quarter): $0.04 As of June 18, 2013

5 Stock Market Information Recommendation: HOLD Significant cost creep: Unit costs 30% higher than low fare competitor-leader Allegiant Industry high labor costs Revenue growth lagging behind peers Missed 15% ROIC target for 2012 Long term outlook seeks cost synergies from AirTran acquisition and development of new, ancillary revenue streams (i.e. checked baggage fees) Strong capacity growth (more than doubled since 2000)

6 Income Statement (In Millions) Gross profit 8,438 7,792 Income from operations Net income The above format is in a single-step format While revenues and corresponding net income are increasing strongly, a fall in operations income suggests that the company s operational costs are increasing

7 Balance Sheet (In Millions) Assets = Liabilities + Stockholders Equity ,596 11,604 6, ,068 11,191 6,877 Assets grew primarily through an increase in flight equipment (aircraft) Liabilities grew by approximately the same amount through an increase in air traffic liability. Stockholders equity decreased slightly to remain approximately the same

8 Statement of Cash Flows (In Millions) Operating Activities 2,064 1,356 Investing Activities (833) (1,022) Financing Activities (947) (766) Cash flows from operations are significantly higher than net income The company is growing through investing activities, especially through recent purchases of new flight equipment (aircraft) The company s two primary sources of financing are proceeds from employee stock plans and proceeds from the termination of interest rate derivative instrument Cash has increased by approximately $2 billion in the last two years

9 Accounting Policies Revenue recognition: Tickets sold are initially deferred as Air traffic liability. Passenger revenue is recognized when transportation is provided. The Company estimates the amount of tickets that expire unused and recognizes such amounts in Passenger Accounts and other receivables: Accounts and other receivables are carried at cost. They primarily consist of amounts due from credit card companies associated with sales of tickets for future travel, amounts due from business partners in the Company s frequent flyer programs, and amounts due from counterparties associated with fuel derivative instruments that have settled.

10 Accounting Policies Inventories: Inventories consist primarily of aircraft fuel, flight equipment expendable parts, materials, and supplies. All of these items are carried at average cost, less an allowance for obsolescence. These items are generally charged to expense when issued for use. Short-term and noncurrent investments: Short-term investments consist of investments with original maturities of greater than three months but less than twelve months when purchased. These are primarily short-term securities issued by the U.S. Government and certificates of deposit issued by domestic banks. All of these investments are classified as available-for-sale securities and are stated at fair value, which approximates cost. Property and equipment: Property and equipment is stated at cost. Depreciation is provided by the straight-line method to estimated residual values over periods generally ranging from 23 to 25 years for flight equipment and 5 to 30 years for ground property and equipment once the asset is placed in service.

11 Topics of Notes to Financial Statements Cash and cash equivalents Short-term and noncurrent investments Accounts and other receivables Inventories Property and equipment Aircraft and engine maintenance Goodwill and intangible assets Revenue recognition Frequent flyer programs Advertising Share-based Employee compensation Financial derivative instruments Software capitalization Income taxes Concentration risk

12 Financial Analysis Liquidity Ratios Liquidity Ratio Formula Working capital CA CL 4,227 4,650 = (423) Current ratio CA/CL 4,227/4,650 = 0.92 Receivables turnover Average days sales uncollected Inventory turnover Net Sales/Averag e AR Days/Receiv ables turnover COGS/Avera ge Inv. 17,088/[( )/2] = ,345 4,533 = (188) 4,345/4,533 = ,658/[( )/2] = /54.2 = /63.4 = ,399/[( )/2] = ,237/[( )/2] = 38.0

13 Financial Analysis Liquidity Ratios Liquidity Ratio Formula Average days inventory on hand Operating cycle Payables turnover Average days payables Days/Inventory turnover Days inventory + Days sales Days payable COGS/Average AP Days/Payables turnover 366/30.8 = /38.0 = = ,399/[( )/2] = = ,237/[( )/2] = /12.4 = /13.6 = 26.8

14 Financial Analysis Liquidity Ratios Although working capital and the current ratio is declining, Southwest has over $1B in cash which decreases the risk of nonpayment to creditors Operating cycle increased significantly, but Southwest is still self-financing Overall liquidity remains strong, bolstered particularly by a strong cash position

15 Financial Analysis Profitability Ratios (In Millions) Formula Profit margin Asset turnover Return on assets Return on equity Net income/reven ue Revenue/Aver age Total Assets Net Income/Avera ge Total Assets Net Income/Avera ge Total SHE 421/17,088 = 2.46% 17,088/[(18, ,068)/2] = /[(18, ,068)/2] = 2.30% 421/[(6, ,887)/2] = 6.07% 178/15,658= 1.14% 15,658/[(18, ,463)/2] = /[(18, ,463)/2] = 1.06% 178/[(6, ,237)/2] = 2.71%

16 Financial Analysis Profitability Ratios Profit margin improved slightly, marking 40 consecutive years of profits an outlier in the airline industry Asset turnover, a measure of revenue generation efficiency, remained flat, but high compared to its competitors ROA and ROE improved significantly, helped by ongoing AirTran acquisition synergies

17 Financial Analysis Market Strength Ratios (In Millions) Formula Price/earnings per share Dividend yield Price per share/eps Annual dividends per share/pps 10.24/0.56 = /10.24 =.337% 8.56/0.23 = /8.56 =.210%

18 Financial Analysis Market Strength Ratios P/E Ratio has declined significantly; no longer overvalued Southwest nearly doubled its dividend in 2012 on the back of improved profitability and operating metrics Dividend growth is expected to continue, as demonstrated with the recent 2013 announcement of a quadrupling the regular quarterly dividend to $0.04

19 Financial Analysis Solvency Ratios (In Millions) Formula Debt to equity Financing gap Total Liabilities/Total Equity Operating Cycle > Days Payable 11,604/6,992 = < 29.5 = Self-financing 11,191/6,887 = < 26.8 = Self-financing

20 Financial Analysis Solvency Ratios A debt to equity ratio greater than one indicates that creditors control the company Low interest rates in recent years have allowed Southwest to increase its debt to equity ratio without jeopardizing the company s financial health Southwest is self-financing; no financing gap exists

21 Industry & Company Plans In the last decade, the US airline industry has undergone an unprecedented period of restructuring and consolidation. Today, airlines are returning to profitability and the industry has stabilized into a sustainable one. ( Among the four legacy carriers that remain (United, Delta, American, and Southwest), Southwest is extremely well positioned to capture market share and demand for low-cost travel.

22 Industry & Company Plans Southwest is currently in the process of acquiring AirTran Airways which will make it the biggest low-cost carrier in North America when complete. The scale and network of the combined carriers will solidify its position as the world s third largest airline by passenger carriage. In addition, Southwest is beginning to foray into international markets. International passenger growth of 4.7% versus 3.1% for domestic passengers last year signal widespread opportunities for future growth in international markets. (FAA Aerospace Forecast Fiscal Years )

23 Industry & Company Plans Southwest has indicated that in light of industry consolidation, it no longer aims to offer the lowest fares, but rather become the dominant carrier on the routes it serves. The industry as a whole is limiting passenger carriage growth in favor of stronger yields and sustainable airfares. est-airlines-were-not-really-about-cheapflights-anymore/

24 Executive Summary The airline industry has witnessed a remarkable structural shift in the last decade. Consolidation has led to sustainable pricing, greater efficiency, and stronger route optimization. Southwest has benefited, and will continue benefit strongly from these developments. Its consistently profitable business model and strong management practices will continue to uphold and strengthen its competitiveness.

25 Executive Summary Southwest is highly efficient at managing capital. Extra cash is used to buyback shares and expand capacity while taking advantage of favorable fuel hedging contracts and attractively-priced acquisitions (most notably, the AirTran acquisition). Airline bankruptcies in the last decade have allowed legacy carriers to renegotiate labor contracts and lower labor costs. But Southwest has not had the opportunity to renegotiate and restructure its labor contracts, whose costs are now among the highest in the industry.

26 Executive Summary In addition, Southwest has been slow to expand into international markets where competitors such as JetBlue have thrived. After missing its 15% ROIC target for 2012, a conservative management has largely failed in efforts to keep Southwest a formidable competitor. Despite these concerns, Southwest s strong financial position will allow it to grow and invest in a restructured industry.

Delta Air Lines, Inc. David Pruchno BUS 210-00A-Su13 - M/W 6-9

Delta Air Lines, Inc. David Pruchno BUS 210-00A-Su13 - M/W 6-9 Delta Air Lines, Inc. David Pruchno BUS 210-00A-Su13 - M/W 6-9 http://www.delta.com/content/dam/delta-www/pdfs/about-financial/deltaairlines_10k_2012.pdf Introduction Richard H Anderson, CEO Former UnitedHealth

More information

The Coca-Cola Company (KO)

The Coca-Cola Company (KO) The Coca-Cola Company (KO) By Daniel Frank Section 00A http://assets.coca-colacompany.com/c4/28/d86e73434193975a768f3500ffae/2012-annual-reporton-form-10-k.pdf Introduction Chief Executive Officer: Muhtar

More information

APPLE INC. Gabriela Nunez Summer 2013 Annual Report: http://investor.apple.com/secfiling.cfm?filingid=1193125-12-444068

APPLE INC. Gabriela Nunez Summer 2013 Annual Report: http://investor.apple.com/secfiling.cfm?filingid=1193125-12-444068 APPLE INC Gabriela Nunez Summer 2013 Annual Report: http://investor.apple.com/secfiling.cfm?filingid=1193125-12-444068 INTRODUCTION Name of chief executive officer Timothy D. Cook Location of home office

More information

Annual Report Netflix, Inc. Don Vu ACG2021.001

Annual Report Netflix, Inc. Don Vu ACG2021.001 Annual Report Netflix, Inc. Don Vu ACG2021.001 Executive Summary Netflix, Inc. is a popular subscription service that provides streaming movies and TV shows over the Internet and delivers DVD rentals.

More information

Brain J. Dunn, CEO Richfield, Minnesota U.S Latest fiscal year: 2010 Best Buy is an American retailer that sells a wide variety of electronic

Brain J. Dunn, CEO Richfield, Minnesota U.S Latest fiscal year: 2010 Best Buy is an American retailer that sells a wide variety of electronic Current Shareholders in Best Buy should hold their stock until price increases, and new investors should not invest if looking for fast money, Best Buy s stock may not more until more economic growth occurs.

More information

Financial Statement Analysis Paper

Financial Statement Analysis Paper Financial Statement Analysis Paper Example 1: Dell Computer Dell Inc. Current Year Prior Year Income Statement 3 Years Ago $ Percent $ Percent $ Percent Revenue 61,494 100.0% 52,902 100.0% 61,101 100.0%

More information

Atthapol Charoenkietkrai ACG2021 Section 2

Atthapol Charoenkietkrai ACG2021 Section 2 Atthapol Charoenkietkrai ACG2021 Section 2 Amazon has been in a good position for the last few years and still on a rise. The assets have increased, and the debt has decreased. The company has exponentially

More information

As of December 31, 2014. As of December 31, 2015. Assets Current assets:

As of December 31, 2014. As of December 31, 2015. Assets Current assets: Assets Current assets: Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of December 31, 2014

More information

MCDONALD S CORPORATION. Harmony Lynn Lazore ACG 2021-001

MCDONALD S CORPORATION. Harmony Lynn Lazore ACG 2021-001 MCDONALD S CORPORATION Harmony Lynn Lazore ACG 2021-001 Executive Summary McDonald s Corporation spent 2006 expanding their number of restaurants world wide, disposing of Chipotle Mexican Grill, and converting

More information

FSA Note: Summary of Financial Ratio Calculations

FSA Note: Summary of Financial Ratio Calculations FSA Note: Summary of Financial Ratio Calculations This note contains a summary of the more common financial statement ratios. A few points should be noted: Calculations vary in practice; consistency and

More information

1. Define the operating and cash cycles. Why are they important?

1. Define the operating and cash cycles. Why are they important? Short-Term Planning Learning Objectives 1. Define the operating and cash cycles. Why are they important? 2. Define the different types of short-term financial policy 3. Understand the essentials of short-term

More information

RAPID REVIEW Chapter Content

RAPID REVIEW Chapter Content RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

More information

SEAGATE TECHNOLOGY PLC CONDENSED CONSOLIDATED BALANCE SHEETS

SEAGATE TECHNOLOGY PLC CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) June 28, ASSETS Current assets: Cash and cash equivalents $ 2,259 $ 1,708 Short-term investments 47 480 Restricted cash and investments 4 101 Accounts

More information

Intel Reports Fourth-Quarter and Annual Results

Intel Reports Fourth-Quarter and Annual Results Intel Corporation 2200 Mission College Blvd. P.O. Box 58119 Santa Clara, CA 95052-8119 CONTACTS: Reuben Gallegos Amy Kircos Investor Relations Media Relations 408-765-5374 480-552-8803 reuben.m.gallegos@intel.com

More information

Income Measurement and Profitability Analysis

Income Measurement and Profitability Analysis PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance

More information

PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)

PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL

More information

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (In millions, except per share amounts) 2015 Three months ended July 31, 2015 2014 Net revenue $ 25,714 $ 25,349 $ 28,406 Costs and expenses: Cost of sales

More information

Intel Reports Second-Quarter Results

Intel Reports Second-Quarter Results Intel Corporation 2200 Mission College Blvd. Santa Clara, CA 95054-1549 CONTACTS: Mark Henninger Amy Kircos Investor Relations Media Relations 408-653-9944 480-552-8803 mark.h.henninger@intel.com amy.kircos@intel.com

More information

What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated?

What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK

More information

Cross Check. A Study of Qantas Financial Health. Almotairi Adhikari Saputro Vannadeth

Cross Check. A Study of Qantas Financial Health. Almotairi Adhikari Saputro Vannadeth Cross Check A Study of Qantas Financial Health Almotairi Adhikari Saputro Vannadeth 1 Financial Analysis of Qantas Airlines With Virgin Australia as benchmark (for the year 2011) Hamoud Almotairi Indra

More information

FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS

FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS SYLLABUS Compulsory part Basic ratio analysis 1. State the general functions of accounting ratios. 2. Calculate and interpret the following ratios: a. working capital/current ratio, quick/liquid/acid test

More information

The items published on the Internet Websites upon the Notice of Convocation of the 147 th Ordinary General Meeting of Shareholders

The items published on the Internet Websites upon the Notice of Convocation of the 147 th Ordinary General Meeting of Shareholders The items published on the Internet Websites upon the Notice of Convocation of the 147 th Ordinary General Meeting of Shareholders Notes to Consolidated Financial Statements & Notes to Non-Consolidated

More information

Financial Analysis Project. Apple Inc.

Financial Analysis Project. Apple Inc. MBA 606, Managerial Finance Spring 2008 Pfeiffer/Triangle Financial Analysis Project Apple Inc. Prepared by: Radoslav Petrov Course Instructor: Dr. Rosemary E. Minyard Submission Date: 5 May 2008 Petrov,

More information

Financial Formulas. 5/2000 Chapter 3 Financial Formulas i

Financial Formulas. 5/2000 Chapter 3 Financial Formulas i Financial Formulas 3 Financial Formulas i In this chapter 1 Formulas Used in Financial Calculations 1 Statements of Changes in Financial Position (Total $) 1 Cash Flow ($ millions) 1 Statements of Changes

More information

Alphabet Announces Fourth Quarter and Fiscal Year 2015 Results

Alphabet Announces Fourth Quarter and Fiscal Year 2015 Results Exhibit 99.1 Alphabet Announces Fourth Quarter and Fiscal Year 2015 Results MOUNTAIN VIEW, Calif. February 1, 2016 Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter

More information

Contact: Don Zerio 5:00 EDT Vice President, Finance, Chief Financial Officer July 21, 2015 (408) 432-1900 NATIONAL DISTRIBUTION

Contact: Don Zerio 5:00 EDT Vice President, Finance, Chief Financial Officer July 21, 2015 (408) 432-1900 NATIONAL DISTRIBUTION e News Release Contact: Don Zerio 5:00 EDT Vice President, Finance, Chief Financial Officer July 21, (408) 432-1900 NATIONAL DISTRIBUTION LINEAR TECHNOLOGY REPORTS INCREASES IN REVENUE AND NET INCOME OVER

More information

Three Months Ended March 31, 2015 Revenues $ 15,420 $ 17,258 Increase in revenues year over year 19% 12%

Three Months Ended March 31, 2015 Revenues $ 15,420 $ 17,258 Increase in revenues year over year 19% 12% Exhibit 99.1 Google Inc. Announces First Quarter 2015 Results MOUNTAIN VIEW, Calif. April 23, 2015 - Google Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended. Google s

More information

Glossary and Formulas

Glossary and Formulas A-B Accounts Payable Includes, but is not limited to, Trade Accounts Payable and Trade Acceptances, that is, amounts owed to vendors for goods and services purchased from outside suppliers and due within

More information

Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:

Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used: Financial Ratios Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios

More information

Financial Results. siemens.com

Financial Results. siemens.com s Financial Results Fourth Quarter and Fiscal 2015 siemens.com Key figures (in millions of, except where otherwise stated) Volume Q4 % Change Fiscal Year % Change FY 2015 FY 2014 Actual Comp. 1 2015 2014

More information

Chapter 17: Financial Statement Analysis

Chapter 17: Financial Statement Analysis FIN 301 Class Notes Chapter 17: Financial Statement Analysis INTRODUCTION Financial ratio: is a relationship between different accounting items that tells something about the firm s activities. Purpose

More information

Investments and advances... 313,669

Investments and advances... 313,669 Consolidated Financial Statements of the Company The consolidated balance sheet, statement of income, and statement of equity of the Company are as follows. Please note the Company s consolidated financial

More information

E5-4 Assessing receivable and inventory turnover (AICPA adapted)

E5-4 Assessing receivable and inventory turnover (AICPA adapted) E5-4 Assessing receivable and inventory turnover (AICPA adapted) Accounts receivable turnover Net credit sales = Average trade receivables = $2,500,000 $462,500 = 5.41 times where average trade receivables

More information

ILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS

ILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS ILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS MAJOR BALANCE SHEET CLASSIFICATIONS ASSETS = LIABILITIES + OWNERS' EQUITY Current Assets Long-Term Investments Current Liabilities Long-Term Debt Capital

More information

Computing Liquidity Ratios Current Ratio = CA / CL 708 / 540 = 1.31 times Quick Ratio = (CA Inventory) / CL (708 422) / 540 =.53 times Cash Ratio =

Computing Liquidity Ratios Current Ratio = CA / CL 708 / 540 = 1.31 times Quick Ratio = (CA Inventory) / CL (708 422) / 540 =.53 times Cash Ratio = 1 Computing Liquidity Ratios Current Ratio = CA / CL 708 / 540 = 1.31 times Quick Ratio = (CA Inventory) / CL (708 422) / 540 =.53 times Cash Ratio = Cash / CL 98 / 540 =.18 times 2 Computing Leverage

More information

Consolidated balance sheet

Consolidated balance sheet 83 Consolidated balance sheet December 31 Non-current assets Goodwill 14 675.1 978.4 Other intangible assets 14 317.4 303.8 Property, plant, and equipment 15 530.7 492.0 Investment in associates 16 2.5

More information

SanDisk Corporation Preliminary Condensed Consolidated Statements of Operations (in thousands, except per share amounts, unaudited)

SanDisk Corporation Preliminary Condensed Consolidated Statements of Operations (in thousands, except per share amounts, unaudited) Preliminary Condensed Consolidated Statements of Operations (in thousands, except per share amounts, unaudited) Revenue $ 1,634,011 $ 1,476,263 $ 3,145,956 $ 2,816,992 Cost of revenue 854,640 789,614 1,595,679

More information

Ratio Analysis CBDC, NB. Presented by ACSBE. February, 2008. Copyright 2007 ACSBE. All Rights Reserved.

Ratio Analysis CBDC, NB. Presented by ACSBE. February, 2008. Copyright 2007 ACSBE. All Rights Reserved. Ratio Analysis CBDC, NB February, 2008 Presented by ACSBE Financial Analysis What is Financial Analysis? What Can Financial Ratios Tell? 7 Categories of Financial Ratios Significance of Using Ratios Industry

More information

Investments and advances... 344,499

Investments and advances... 344,499 Consolidated Financial Statements of the Company The consolidated balance sheet, statement of income, and statement of equity of the Company are as follows. Please note the Company s consolidated financial

More information

Belden Reports Record Revenues in the Second Quarter 2014

Belden Reports Record Revenues in the Second Quarter 2014 July 30, 2014 Belden Reports Record Revenues in the Second Quarter 2014 ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for

More information

Components of a Business Model Core Strategy 1-5 Strategic 1-5 Partnership 1-5 Customer 1-5 Resources Network Interface

Components of a Business Model Core Strategy 1-5 Strategic 1-5 Partnership 1-5 Customer 1-5 Resources Network Interface ENGI 8607: Business Planning and Strategy in an Entrepreneurial Environment ZipCar Dr. Amy Hsiao Lecture 5 Memorial University of Newfoundland ZipCar Components of a Business Model How It Works http://www.zipcar.com/cambridge/findcars?zipfleet_id=94396

More information

RYANAIR DELIVERS RECORD Q3 PROFITS, TRAFFIC GROWS BY 54%, PROFITS RISE BY 10%

RYANAIR DELIVERS RECORD Q3 PROFITS, TRAFFIC GROWS BY 54%, PROFITS RISE BY 10% RYANAIR DELIVERS RECORD Q3 PROFITS, TRAFFIC GROWS BY 54%, PROFITS RISE BY 10% Ryanair, Europe s No.1 low fares airline today (Wed 28 Jan 2004) released financial results for the quarter ended 31 Dec 03

More information

Company and its 12. Page IN EQUITY T OF CASH FLOWS AUDIT REVIEW OUTLOOK DIVIDEND

Company and its 12. Page IN EQUITY T OF CASH FLOWS AUDIT REVIEW OUTLOOK DIVIDEND TIGER AIRWAYS HOLDINGS LIMITED Co. Reg. No. 200701866W (Incorporated in the Republic of Singapore) THIRD QUARTER AND NINE MONTHS FINANCIAL STATEMENTS The Board of Directors (the Board ) of Tiger Airways

More information

Consolidated Statement of Profit or Loss (in million Euro)

Consolidated Statement of Profit or Loss (in million Euro) Consolidated Statement of Profit or Loss (in million Euro) Q3 2013 Q3 2014 % change 9m 2013 9m 2014 % change Revenue 689 636-7.7% 2,126 1,909-10.2% Cost of sales (497) (440) -11.5% (1,520) (1,324) -12.9%

More information

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program

More information

1.1 Role and Responsibilities of Financial Managers

1.1 Role and Responsibilities of Financial Managers 1 Financial Analysis 1.1 Role and Responsibilities of Financial Managers (1) Planning and Forecasting set up financial plans for their organisations in order to shape the company s future position (2)

More information

The company increased its revenues by 8.4% to reach 863 million Euros in 2011. The operating profit (EBIT) amounted to 11.4 million Euros.

The company increased its revenues by 8.4% to reach 863 million Euros in 2011. The operating profit (EBIT) amounted to 11.4 million Euros. 2011 results Vueling achieves a net profit of 10.4 million Euros in 2011, despite the increase in fuel prices The company increased its revenues by 8.4% to reach 863 million Euros in 2011. The operating

More information

Note 2 SIGNIFICANT ACCOUNTING

Note 2 SIGNIFICANT ACCOUNTING Note 2 SIGNIFICANT ACCOUNTING POLICIES BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS The consolidated financial statements have been prepared in accordance with International Financial Reporting

More information

FNCE 3010 (Durham). HW2 (Financial ratios)

FNCE 3010 (Durham). HW2 (Financial ratios) FNCE 3010 (Durham). HW2 (Financial ratios) 1. What effect would the following actions have on a firms net working capital and current ratio (assume NWC is positive and current ratio is initially greater

More information

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

More information

Shin Kong Investment Trust Co., Ltd. Financial Statements for the Years Ended December 31, 2014 and 2013 and Independent Auditors Report

Shin Kong Investment Trust Co., Ltd. Financial Statements for the Years Ended December 31, 2014 and 2013 and Independent Auditors Report Shin Kong Investment Trust Co., Ltd. Financial Statements for the Years Ended, 2014 and 2013 and Independent Auditors Report INDEPENDENT AUDITORS REPORT The Board of Directors and stockholder Shin Kong

More information

Please NOTE This example report is for a manufacturing company; however, we can address a similar report for any industry sector.

Please NOTE This example report is for a manufacturing company; however, we can address a similar report for any industry sector. Please NOTE This example report is for a manufacturing company; however, we can address a similar report for any industry sector. Performance Review For the period ended 12/31/2013 Provided By Holbrook

More information

United Rentals Announces Fourth Quarter and Full Year 2015 Results and Provides 2016 Outlook

United Rentals Announces Fourth Quarter and Full Year 2015 Results and Provides 2016 Outlook United Rentals Announces Fourth Quarter and Full Year 2015 Results and Provides 2016 Outlook United Rentals, Inc. 100 First Stamford Place Suite 700 Stamford, CT 06902 Telephone: 203 622 3131 203 622 6080

More information

Discussion Board Articles Ratio Analysis

Discussion Board Articles Ratio Analysis Excellence in Financial Management Discussion Board Articles Ratio Analysis Written by: Matt H. Evans, CPA, CMA, CFM All articles can be viewed on the internet at www.exinfm.com/board Ratio Analysis Cash

More information

http://www.uic.edu/classes/actg/actg516rtr/ 2301, University Hall, 312 996-3270 Open Book and Notes rramakri@uic.edu

http://www.uic.edu/classes/actg/actg516rtr/ 2301, University Hall, 312 996-3270 Open Book and Notes rramakri@uic.edu Accounting 516 Mid-term Summer 2014 Ram T. S. Ramakrishnan http://www.uic.edu/classes/actg/actg516rtr/ 2301, University Hall, 312 996-3270 Open Book and Notes rramakri@uic.edu Tuesday, July 15, 2014 Show

More information

650-527-5152 650-527-6273 SYMANTEC REPORTS FIRST QUARTER FISCAL YEAR 2016 RESULTS

650-527-5152 650-527-6273 SYMANTEC REPORTS FIRST QUARTER FISCAL YEAR 2016 RESULTS FOR IMMEDIATE RELEASE MEDIA CONTACT: INVESTOR CONTACT: Kristen Batch Sean Hazlett Symantec Corp. Symantec Corp. 650-527-5152 650-527-6273 kristen_batch@symantec.com sean_hazlett@symantec.com SYMANTEC REPORTS

More information

Notes to Consolidated Balance Sheet

Notes to Consolidated Balance Sheet Notes to Consolidated Balance Sheet 1. Amounts less than one million yen have been omitted. 2. Standards for recognition and measurement of trading assets and liabilities are as follows: Recognition: Trading

More information

RYANAIR ANNOUNCE RECORD Q.1 RESULTS NET PROFIT RISES 80% TO 116m - TRAFFIC GROWS 25% TO 10.7m

RYANAIR ANNOUNCE RECORD Q.1 RESULTS NET PROFIT RISES 80% TO 116m - TRAFFIC GROWS 25% TO 10.7m RYANAIR ANNOUNCE RECORD Q.1 RESULTS NET PROFIT RISES 80% TO 116m - TRAFFIC GROWS 25% TO 10.7m Ryanair, Europe s No.1 low fares airline, today (August 1, 2006) announced record profits of 115.7m for its

More information

Citibank Japan, LTD ( CJL ) 2-3-14 Higashi-shinagawa, Shinagawa-ku, Tokyo Representative Director, President & CEO Darren Buckley

Citibank Japan, LTD ( CJL ) 2-3-14 Higashi-shinagawa, Shinagawa-ku, Tokyo Representative Director, President & CEO Darren Buckley Financial Publication for Fiscal Year Ended March 31, 2009 June 30, 2009 Citibank Japan, LTD ( CJL ) 2-3-14 Higashi-shinagawa, Shinagawa-ku, Tokyo Representative Director, President & CEO Darren Buckley

More information

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

More information

Performance Food Group Company Reports First-Quarter Fiscal 2016 Earnings

Performance Food Group Company Reports First-Quarter Fiscal 2016 Earnings NEWS RELEASE For Immediate Release November 4, 2015 Investors: Michael D. Neese VP, Investor Relations (804) 287-8126 michael.neese@pfgc.com Media: Joe Vagi Manager, Corporate Communications (804) 484-7737

More information

EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) TABLE 1 Quarter Ended March 31, Percent Change Net Sales $ 5,854 $ 5,919 1% Costs and expenses: Cost of sales 3,548 3,583

More information

Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements

Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements In the United States, businesses generally present financial information in the form of financial statements

More information

LOTTOMATICA GROUP ANNOUNCES RESULTS FOR THE THIRD-QUARTER AND NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2011

LOTTOMATICA GROUP ANNOUNCES RESULTS FOR THE THIRD-QUARTER AND NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2011 PRESS RELEASE LOTTOMATICA GROUP ANNOUNCES RESULTS FOR THE THIRD-QUARTER AND NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2011 Consolidated Financial and Business Highlights Continued quarterly Revenue growth

More information

HTC CORPORATION 4Q15 BUSINESS REVIEW. CHIALIN CHANG, CFO & PRESIDENT OF GLOBAL SALES EDWARD WANG, VP OF FINANCE February 3, 2016

HTC CORPORATION 4Q15 BUSINESS REVIEW. CHIALIN CHANG, CFO & PRESIDENT OF GLOBAL SALES EDWARD WANG, VP OF FINANCE February 3, 2016 HTC CORPORATION 4Q15 BUSINESS REVIEW CHIALIN CHANG, CFO & PRESIDENT OF GLOBAL SALES EDWARD WANG, VP OF FINANCE February 3, 2016 DISCLAIMER STATEMENT This presentation and release contain forward-looking

More information

Consolidated Financial Results for the nine months of Fiscal Year 2010

Consolidated Financial Results for the nine months of Fiscal Year 2010 Consolidated Financial Results for the nine months of Fiscal Year 2010 (Fiscal Year 2010: Year ending March 31, 2010) Noritake Co., Limited Company Name Stock Exchange Listings Tokyo, Nagoya Code Number

More information

Consolidated Statement of Profit or Loss (in million Euro)

Consolidated Statement of Profit or Loss (in million Euro) Consolidated Statement of Profit or Loss (in million Euro) Q3 2014 Q3 2015 % change 9m 2014 9m 2015 % change Revenue 636 661 3.9% 1,909 1,974 3.4% Cost of sales (440) (453) 3.0% (1,324) (1,340) 1.2% Gross

More information

N E W S R E L E A S E

N E W S R E L E A S E N E W S R E L E A S E FOR IMMEDIATE RELEASE Contact: Steven E. Nielsen, President and CEO H. Andrew DeFerrari, Senior Vice President and CFO (561) 627-7171 DYCOM INDUSTRIES, INC. ANNOUNCES FISCAL 2016

More information

HTC CORPORATION 2Q15 BUSINESS REVIEW. CHIALIN CHANG, CFO & PRESIDENT OF GLOBAL SALES EDWARD WANG, VP OF FINANCE AUGUST 6 th, 2015

HTC CORPORATION 2Q15 BUSINESS REVIEW. CHIALIN CHANG, CFO & PRESIDENT OF GLOBAL SALES EDWARD WANG, VP OF FINANCE AUGUST 6 th, 2015 HTC CORPORATION 2Q15 BUSINESS REVIEW CHIALIN CHANG, CFO & PRESIDENT OF GLOBAL SALES EDWARD WANG, VP OF FINANCE AUGUST 6 th, 2015 DISCLAIMER STATEMENT This presentation and release contain forward-looking

More information

6. Financial Planning. Break-even. Operating and Financial Leverage.

6. Financial Planning. Break-even. Operating and Financial Leverage. 6. Financial Planning. Break-even. Operating and Financial Leverage. Financial planning primarily involves anticipating the impact of operating, investment and financial decisions on the firm s future

More information

CONSOLIDATED STATEMENT OF INCOME

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF INCOME 4 th quarter (a) 3 rd quarter 4 th quarter 2009 Sales 40,157 40,180 36,228 Excise taxes (4,397) (4,952) (4,933) Revenues from sales 35,760 35,228 31,295 Purchases, net

More information

Is Apple overvalued? An Introduction to Financial Analysis

Is Apple overvalued? An Introduction to Financial Analysis Is overvalued? An Introduction to Financial Analysis The fact that the stock price almost doubled during the last year, was evidence enough for many people to say that investors had gone crazy. Other people

More information

FRANKLIN ELECTRIC REPORTS RECORD SECOND QUARTER 2013 SALES AND EARNINGS

FRANKLIN ELECTRIC REPORTS RECORD SECOND QUARTER 2013 SALES AND EARNINGS For Immediate Release For Further Information Refer to: John J. Haines 260-824-2900 FRANKLIN ELECTRIC REPORTS RECORD SECOND QUARTER 2013 SALES AND EARNINGS Bluffton, Indiana July 30, 2013 - Franklin Electric

More information

Report Description. Business Counts. Top 10 States (by Business Counts) Page 1 of 16

Report Description. Business Counts. Top 10 States (by Business Counts) Page 1 of 16 5-Year County-Level Financial Profile Industry Report Architectural Services (SIC Code: 8712) in Prince George County, Maryland Sales Range: $500,000 - $999,999 Date: 11/07/08 Report Description This 5-Year

More information

Interim financial report for the first quarter of 2011

Interim financial report for the first quarter of 2011 Interim financial report for the first quarter of 2011 Improved results between years in spite of high fuel prices Total turnover was ISK 16.0 billion, down by 2% between years EBITDA was negative by ISK

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

Arrow Reports Solid First Quarter Operating Results and Strong Asset Quality Ratios

Arrow Reports Solid First Quarter Operating Results and Strong Asset Quality Ratios 250 Glen Street Glens Falls, NY Contact: Timothy C. Badger Tel: (518)745-1000 Fax: (518)745-1976 TO: All Media DATE: Tuesday, April 19, 2011 Arrow Reports Solid First Quarter Operating Results and Strong

More information

Kansas City 4Life Insurance Company

Kansas City 4Life Insurance Company Kansas City 4Life Insurance Company 2012 Fourth Quarter Report Includes our subsidiaries: Sunset Life Insurance Company of America Old American Insurance Company Sunset Financial Services, Inc. Post Office

More information

Third Quarter 2015 Financial Highlights:

Third Quarter 2015 Financial Highlights: DISCOVERY COMMUNICATIONS REPORTS THIRD QUARTER 2015 RESULTS, INCREASES BUYBACK AUTHORIZATION BY $2 BILLION AND ANNOUNCES RESUMPTION OF SHARE REPURCHASES BEGINNING IN FOURTH QUARTER 2015 Third Quarter 2015

More information

TYPES OF FINANCIAL RATIOS

TYPES OF FINANCIAL RATIOS TYPES OF FINANCIAL RATIOS In the previous articles we discussed how to invest in the stock market and unit trusts. When investing in the stock market an investor should have a clear understanding about

More information

ACER INCORPORATED AND SUBSIDIARIES. Consolidated Balance Sheets

ACER INCORPORATED AND SUBSIDIARIES. Consolidated Balance Sheets Consolidated Balance Sheets June 30, 2015, December 31, 2014, and (June 30, 2015 and 2014 are reviewed, not audited) Assets 2015.6.30 2014.12.31 2014.6.30 Current assets: Cash and cash equivalents $ 36,400,657

More information

Summary of Consolidated Financial Results for the Nine Months ended December 31, 2014

Summary of Consolidated Financial Results for the Nine Months ended December 31, 2014 Summary of Consolidated Financial Results for the Nine Months ended January 30, 2015 Company Name: NGK INSULATORS, LTD. URL: http://www.ngk.co.jp/english/ Listing Code: 5333 Stock Exchange Listings: Tokyo

More information

Cash is King. cash flow is less likely to be affected

Cash is King. cash flow is less likely to be affected Reading 27: Understanding Cash Flow Statements Relevance of Cash Flow The primary purpose of the statement of cash flows (SCF) is to provide: Info about a firm s cash receipts & cash payments during an

More information

Financial Terms & Calculations

Financial Terms & Calculations Financial Terms & Calculations So much about business and its management requires knowledge and information as to financial measurements. Unfortunately these key terms and ratios are often misunderstood

More information

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary.

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary. 87 Accounting Policies Intangible assets a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets and liabilities of the acquired company

More information

Acal plc. Accounting policies March 2006

Acal plc. Accounting policies March 2006 Acal plc Accounting policies March 2006 Basis of preparation The consolidated financial statements of Acal plc and all its subsidiaries have been prepared in accordance with International Financial Reporting

More information

FOSSIL GROUP, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2014 RESULTS; Fourth Quarter Net Sales of $1.065 Billion; Diluted EPS Increases 12% to $3.

FOSSIL GROUP, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2014 RESULTS; Fourth Quarter Net Sales of $1.065 Billion; Diluted EPS Increases 12% to $3. FOSSIL GROUP, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2014 RESULTS; Fourth Quarter Net Sales of $1.065 Billion; Diluted EPS Increases 12% to $3.00 Fiscal Year 2014 Net Sales Increase 8% to $3.510 Billion;

More information

2. More important - provide a profile of firm s economic characteristics and competitive strategies.

2. More important - provide a profile of firm s economic characteristics and competitive strategies. RATIO ANALYSIS-OVERVIEW Ratios: 1. Provide a method of standardization 2. More important - provide a profile of firm s economic characteristics and competitive strategies. Although extremely valuable as

More information

Guidance on Accounting Elements

Guidance on Accounting Elements Guidance on Accounting Elements OCR GCE in Business Studies August 2012 The following guidance has been prepared in order to assist centres in the preparation of their candidates for the accounting elements

More information

Microsoft Cloud and Hardware Results Drives Fourth Quarter Performance

Microsoft Cloud and Hardware Results Drives Fourth Quarter Performance Microsoft Cloud and Hardware Results Drives Fourth Quarter Performance Commercial cloud annualized revenue run rate now exceeds $8 billion; Computing and Gaming Hardware, including Xbox and Surface, deliver

More information

3 4 5 6 FINANCIAL SECTION Five-Year Summary (Consolidated) TSUKISHIMA KIKAI CO., LTD. and its consolidated subsidiaries Years ended March 31 (Note 1) 2005 2004 2003 2002 2001 2005 For the year: Net sales...

More information

FOR IMMEDIATE RELEASE

FOR IMMEDIATE RELEASE FOR IMMEDIATE RELEASE O-I REPORTS FULL YEAR AND FOURTH QUARTER 2014 RESULTS O-I generates second highest free cash flow in the Company s history PERRYSBURG, Ohio (February 2, 2015) Owens-Illinois, Inc.

More information

In this chapter, we build on the basic knowledge of how businesses

In this chapter, we build on the basic knowledge of how businesses 03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize

More information

Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2008

Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2008 February 5, 2008 Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2008 Corporate Name: Alfresa Holdings Corporation (Code: 2784, 1st sections of Tokyo Stock Exchange

More information

SYNOPSYS POSTS FINANCIAL RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 2007

SYNOPSYS POSTS FINANCIAL RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 2007 PRESS RELEASE INVESTOR CONTACT: Lisa L. Ewbank Synopsys, Inc. 650-584-1901 EDITORIAL CONTACT: Yvette Huygen Synopsys, Inc. 650-584-4547 yvetteh@synopsys.com SYNOPSYS POSTS FINANCIAL RESULTS FOR FOURTH

More information

Telesat Reports Results for the Quarter and Year Ended December 31, 2014

Telesat Reports Results for the Quarter and Year Ended December 31, 2014 Telesat Reports Results for the Quarter and Year Ended December 31, 2014 OTTAWA, CANADA, February 26, 2015. Telesat Holdings Inc. ( Telesat ) today announced its financial results for the three month and

More information

SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES. Consolidated Financial Statements

SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES. Consolidated Financial Statements SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements Report of Independent Public Accountants To the Board of Directors of Sumitomo Densetsu Co., Ltd. : We have audited the consolidated

More information

Kansas City 4Life Insurance Company

Kansas City 4Life Insurance Company Kansas City 4Life Insurance Company 2009 Fourth Quarter Report Includes our subsidiaries: Sunset Life Insurance Company of America Old American Insurance Company Sunset Financial Services, Inc. Post Office

More information

Consolidated Financial Results for Six Months Ended September 30, 2007

Consolidated Financial Results for Six Months Ended September 30, 2007 Consolidated Financial Results for Six Months Ended September 30, 2007 SOHGO SECURITY SERVICES CO., LTD (URL http://ir.alsok.co.jp/english) (Code No.:2331, TSE 1 st Sec.) Representative: Atsushi Murai,

More information