For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any of its own stock and/or issued stock dividends during the current period? Why is this important, and would you find any of this information on the statement of cash flows? What level of liquidity and solvency would you be looking for? Why? Tip: Consider the footnotes in your reply.
For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any of its own stock and/or issued stock dividends during the current period? Why is this important, and would you find any of this information on the statement of cash flows? What level of liquidity and solvency would you be looking for? Why? Tip: Consider the footnotes in your reply.
Related questions
Narratives on the following: Based on the information in the attached pictures.
at least one ratio from each category (liquidity, asset management, debt management, profitability, and market value)
a comparison of the results of the two fiscal years for the ratios chosen (i.e., increase, decrease, ideas as to why this might have occurred)
a comparison to the industry average for the ratios chosen (i.e., how the company compares to the industry and what this means for the company)
What risk is the company facing? Is this true for the entire industry? How can the company mitigate this risk? What is the industry Beta and the company's Beta?
recommendations for individuals who may be considering investing in the chosen company
Given the model of valuation is the company priced fairly? What recommendations would you make to increase the value of the company (be thorough make specific recommendations tied back to the company's stated financial goals).
Assume that you were given an early inheritance of $50,000 and on January 2, 2015, you used the money to invest in your chosen company's stock. You held the company's stock during 2015, selling all of your shares on December 31, 2015. Answer the following:
How many shares did you purchase on January 2, 2015?
What was the initial purchase price per share of stock?
Did you earn any dividends during 2015? Cash or stock? What was the value of your dividends? Would you have received a stock-split or been part of a repurchase program?
At what price per share did you sell your stock at on December 31, 2015?
Did you make any money on your investment? If so, how much? If not, how much did you lose?
Answer based on this info:
| All Figures in 000's | |||
| Particulars | 2014 | 2015 | 2016 |
| Current Asset | 2764538 | 3133214 | |
| Current Liability | 1049014 | 1187659 | |
| Cash & Cash Equivalents | 441850 | 600646 | |
| Investment others | 268720 | 310072 | |
| Investments fixed maturity | 1304962 | 1510538 | |
| Receivables | 189869 | 175210 | |
| Total Assets | 5998978 | 6872175 | 8150175 |
| Shareholders Equity | 1527368 | 1884359 | 2251406 |
| Total debt | 2190869 | 2688758 | |
| Sales | 3074531 | 3275656 | |
| Operating profit | 663024 | 866814 | |
| Net profit | 356741 | 489001 | |
| Price on the last day ($) | 330.62 | 345.05 | |
| EPS ($ per share) | 18.21 | 24.95 | |
| Particulars | Formula | 2015 | 2016 |
| Current Ratio | current assets/current liabilities | 2.64 | 2.64 |
| Quick Ratio | (cash + investments + receivables)/curretn liabilities | 2.10 | 2.19 |
| Operating Margin | (Operating Profit/Sales)*100 | 21.57% | 26.46% |
| Net Profit Margin | (Net Profit/Sales)*100 | 11.60% | 14.93% |
| Return on Total assets | (Net profit/Average assets)*100 | 5.54% | 6.51% |
| Return on common equity | (Net profit/Average shareholders equity)*100 | 20.91% | 23.65% |
| Return on invested capital | (Net income -dividends)/(Debt+quity) | 8.27% | 7.92% |
| Price/Earnings | Price/EPS | 18.16 | 13.83 |
| Market Capitalisation | Price * Bumber of shares outstanding | 6475732602 | 6761637756 |
| Share outstanding | NA | 19586633 | 19596110 |
| Dividend per share ($) | NA | 1 | 5 |
| Dividend Yield | (Dividend/Price)*100 | 0.30% | 1.45% |
