Fy201 Week 4 Agression Analysis Paper

Komatsu’s 2015 Annual report delineates that the ROA is about 5.5%. The indicated data by Komatsu is 154,009 million yen as net income and 2,798,407 million yen as a summary of assets (Komatsu Report 2015, 31). Caterpillar, in reference, delineates an ROA of 4.4% and John Deere delineates an ROA of 5.2%. ). Using the two competitors in addendum to Komatsu, it is logical to maintain that Komatsu’s differentiation strategy has resulted in above average returns. As one can determine, Komatsu’s ROA, which is not a ratio discussed in any of the three reports but instead calculated separately, is a minimum of .3% greater than the two direct competitors displayed in the construction and mining equipment manufacturing industry. Caterpillar, the giant of this environment, exemplifies in the 2014 annual report that Caterpillar enacts cost management. Komatsu’s differentiation strategy resulted in a 1.1% larger ROA than Caterpillar’s cost leadership strategy at 4.4%.

RETURN ON TOTAL ASSETS. Under the return on assets method, the profits after taxes is .248 percent of the total assets in 2001. In the year 2002, the profit after taxes has decreased to only .219 percent of the total assets. In the year 2003, the net profit after tax has greatly increased to .872 percent of the total assets. Net profit before tax in 2004 has again decreased to .386 percent of the total assets. Finally, the net profit after tax in the year 2005 has increased to .708 percent of the total assets. This is again a very good sign that business has improved during the year 2005.

I enjoyed reading your post. It seems that you have some familiarity with working with SPSS21 which is awesome because that will give you a good head start. When it comes to learning something new especially in an area that is outside of your comfort zone it is hard not to experience an elevated level of anxiety. You pointed out some great key facts that there are different branches of statistics which analyzes two total different perspectives. Working in healthcare I guess this information would be deemed necessary in helping to understand different areas of an organization dealing with issues such as market opportunities helping forecast potential issues in the

ROA is considered the best overall indicator of the efficiency of assets used in a company. Home Depot and Lowe’s ROA ratio both moved down due to the downturn in the industry but Home Depot was able to improve 2010.

term debt and drew down on its cash reserves to fund the balance. Thus, although sales went up and cost of goods sold declined, the acquisition of assets and business expansion activities led to a reduction in the cash balance. 5. Measure the free cash flow of the firm. What does it indicate? The free cash flow (FCF) of a firm (also known as cash flow from assets) indicates how much cash a firm can freely distribute to its creditors and stockholders. It is cash, which is not needed for working capital or fixed asset investments. Free cash flow is measured as follows: FCF = Operating cash flow – Net capital spending – Change in net working capital Where: Operating Cash flow (OCF) = Earnings before interest and taxes +Depreciation -Taxes Net Capital Spending (NCS)=

The Table 3.2 illustrates the financial information of Vipshop Company from 2012 to 2014. Both the ROA of 2014 and 2013 have reach the 5%, while this e-commerce company are under deficit in 2012. This results in an invalid ROA in 2012, which are deleted from the dataset. This paper only calculates the average figures of the rest of two years.

The company utilized most of the cash generated by operations to increase their fixed assets by almost 30%. Financing cash flows indicate an increase in long-term liabilities and dividends paid accounted for most of the negative cash flow from financing. In general, when more cash is generated than used, the dividends increase, some stock can be bought back, loans and accounts payable can be reduced, or investment can be made into another company. Warf computers’ finances are showing all the transactions.

Total Cash Flows from Investing: even with the significant amount of capital expenditures, the positive inflow states a decline in business investment which is not good news for the future; this is surprising based on the new strategy focus.

Furthermore, it is important to calculate some relevant general ratios. Therefore, the Return on Assets (ROA) and the Return on Equity (ROE) will be calculated. The ROA is a key indicator of the profitability, while the ROE is a key indicator that compares the profit of YUM Brand Corporation to the shareholders investment. The ROA in 2008 is 9.5% and increases in 2009 to 10.29%, while it goes back in 2010 to 9.74%. The above written percentages from 2008 to 2010 compares the bottom line profits to the total investment and can be used to measure the performance of corporations operations.

Return on Assets (ROA) measures how profitably a company uses their assets by net income divided by the average total assets. Assets are either tangible or intangible items the company owns. For example, things like buildings, equipment, cash, office supplies, or accounts

In all 3 years, the company shows a negative cash flow from its investing activities (where the capital expenditures fall into), which indicates a cash outflow. Their cash from operations shows that it cannot accommodate to pay all of its capital expenditures due to the values shown in their net cash used in investing activities comparing to their net cash generated by operating activities.

Return on assets (ROA) is to measure the value of company’s total assets to indicate company’s profitability. ROA also gives an idea as to how efficient management is at using its assets to generate earnings.

Furthermore, to create and maintain profitability, financial organization needs to focus on organizational efficiency. Through the use of net operating margin,

It is also important to note that our return on Assets (ROA) could be derived in a way of; profit margin × Assets turnover Ratio =

From 2009-2010 their liquidity decreased while from 2010-2011 it increased. The negative amount of liability shows that they have paid more than they were required to pay. The company's accounts payable staff can use to offset future payments to suppliers. So they could have done this to ensure that they get the resources required by them from the supplier in the future and there will be no need to pay for it and they won’t have any liability at that time. Positive working capital means that the company is able to pay off its short-term liabilities.