The gearing of Rolls Royce can give us an insight into how well they well be able to financially cope with the expansion and wether or not it will be capable of doing so. Gearing shows where the source of a businesses captial derives from , wether from long term loans (debt) or wether from share capital or reserves. It is calculated by dividing the businesses long term loans by the total sum of its total equity and its non current liabilities which is then multiplied by 100. Between the years 2012 and 2013 Rolls Royces gearing has increased from 11.28% in 2012 to 16.24% in 2013. Although their gearing has slightly increased the
The growth in revenue from 2009 to 2010 using the gross method 2,341% as Groupon went from revenues in 2009 of approximately $30 million to $713 million in 2010. The growth in revenue using the net method was still particularly high at 2,152% growth. d. Which method (gross or net) do you believe is more informative to investors who
LinkedIn generated over $970 million in revenue and over $21 million in net income that same year. In order to conclude whether Linkedin is a favorable investment, four valuation models were used for this analysis. Price-to-earnings (P/E) valuation, price-to-sales (P/S) valuation, discounted cash flow valuation, and average-revenue-per-user (ARPU). Three of these four valuation models provide evidence that the company is undervalued, and therefore is a good investment. We recognize that there are plenty of other factors that can affect their valuation currently and in the future, however, the analysis shows that today LinkedIn is a good company to invest in.
In this case it is from 4.6 days in 2008 to 5.41 days in 2010. This is quite good according to other industry where maturity of invoice is usually more than 30 days. But what is more important comparing to trade-creditors which is usually 21day it is almost quarter of the time. That means that Ryanair can accumulate four times more cash that they need to cover the obligations at that time. This improves quite well their cash flow.
The real challenge is to figure out a mutual beneficial solution which satisfies the needs of the various stakeholders. Apple currently has a market value of $469 billion , and its stock has recently reached $502.69 which is a 20 percent increase for this year . These financial figures are a testament to Apple’s ability to create value for its shareholders, while at the same time providing use value for its consumers. But, does this constitute the creation of “shared value”? According to Michael E. Porter, and Mark R. Kramer’s definition of ‘Creating Shared Value’ Apple has some work to do before it can boast that it creates ‘shared value’.
BSkyB achieved that objective earlier than expected, and that is one key reason why they have been able to enjoy consistent growth in revenues and profits, despite the recent economic downturn. As well as adding many new subscribers BSkyB has been able to increase the average amount spent by each subscribing household on its services. Pay-Tv subscribers have been persuaded to buy their Internet broadband from BSkyB; customers have upgraded to access HD and 3D; customer loyalty has been improved resulting in a lower percentage of subscribers leaving each year. BSkyB’s strategy has been focused on market penetration, where they have succeeded in increase their share in the subscription television market and product development via innovation leading to the highly successful Sky HD services. This organic growth strategy has resulted in impressive momentum despite a difficult external environment such as the pressure on household spending and advertising.
In spite of the economic downturn globally during the fourth quarter of 2008, Alibaba.com announced that total revenue for the company increased 39 percent over 2007, and registered users jumped by 80 percent. More than 1 million new members joined during each of the third and fourth quarters of 2008. Questions • What are the implications of the company's new ownership structure and shareholder expectations? Over the years, Alibaba.com has developed an effective group of programs and tools to make using the site easier, safer, and more rewarding. Alibaba.com must keep the customers royalty by developing more easy to use, advanced tool on the website, better service to make distinct with the competitors.
On competitive terms, SureCut is not risky at all – it has been on the market for more than three decades, and based on its historical results, it is expected to continue its financial growth, notwithstanding competition from companies providing for cheaper scissors and shears. On operating terms, SureCut may be risky in terms of liquidity. While the company usually had sufficient capital to cover permanent requirements, i.e., it remains profitable during a 12-year period, the company usually obtains short term borrowings from banks during July to December of each year, when additional working capital was needed to support a seasonal sales peak. 2.What are the characteristics of SureCut’s need for external finance? What is the timing, magnitude and duration of the needs?
By 2009, L’Occitane had 1517 retail locations in more than 85 countries, of which 753 were self-owned. By 2015, it aimed to almost double its number of stores to 1,428, and needed €130 million for the same, €40 million for manufacturing facilities and €20 million for R&D. So to achieve its objectives, it needed to raise capital through IPOs like UC Rusal raised $21.5 billion in its IPO in 2010. Costs and disadvantages of doing IPO for L’Occitane: - Going public will lessen ownership share and thus, control of the owners. - L’Occitane will have to pay Underwriting fees for doing IPO. - It will have to incur legal, accounting, and marketing costs including costs associated with auditing, reporting and complying with exchange regulations.
Although BKI is a successful company, the CEO is being challenged with the decision to implement a new capital structure that would be best for the family company. Currently, they have no debt. Only twice in the past has the firm borrowed a substantial amount of money; both times, BKI paid off the debt as quickly as possible. The plan being proposed is to use $209 million of cash and $50 million in new interest-bearing debt at the rate of 6.75% to repurchase 14 million shares at a price of $18.50 per share. Under the proposed capital structure change, the value of the firm would increase, which would also increase shareholders’ value.