What inference can be drawn from the companies free

Assignment Help Financial Management
Reference no: EM131985679

Assignment

 

A.

  • Two different stock exchanges in the United States
  • Similarities and differences between the two stock exchanges
  • One stock from each of the two stock exchanges

The NASDAQ and the NYSE are the stock exchanges in the United States. NYSE has a larger market capitalization than the NASDAQ and it covers mostly technology stocks while the NYSE covers well established and more stable stocks.

On the other hand, NASDAQ is fully automated compared to NYSE which still uses people to monitor the stock and carry out electronic trading. Overall it is cheaper for companies to list on the NASDAQ stock exchange.

The NASDAQ is a dealer's market while the NYSE is an auction market. An example of a company listed in NASDAQ is Google while a company listed in the NYSE is Walmart.

B.

  • Determine the free cash flow from 2013 & 2014
  • What inference can be drawn from the companies' free cash flow

Company       2013                2014

Google         11.3 Billion 12.01 Billion 

Walmart9.83 Billion10.14 Billion

In this case, both companies are doing very well in the market. They have very large free cash flows.

C.

  • Financial ratios for: liquidity, asset management, and profitability ratios.
  • Challenges, Strengths and Weaknesses

 

Google

Walmart

Financial ratios

2013

2014

2013

2014

Current ratio

4.58

4.80

0.83

0.88

Asset turnover

0.58

0.55

2.37

2.34

Net margins

21.6

21.88

3.62

3.36

It is very clear that Google has more liquidity than Walmart. Walmart has a lot of capital in its assets.

Walmart generates more revenues from its assets than Google.  Walmart's business model is setup to create this type of environment.

Google has low assets and high human workforce. Overall Google is much more profitable than Walmart.

Attachment:- Financial Data.rar

Reference no: EM131985679

Questions Cloud

Calculate the time-mean and space-mean speeds : Assuming all vehicles were traveling at constant speed over this roadway section, calculate the time-mean and space-mean speeds.
How was the money divided : Two boys divided $3.36 so that one boy received 12 cents less than three times as much as the other. How was the money divided?
Compare quantitative and qualitative risk analysis : Compare and contrast quantitative and qualitative risk analysis. Describe a situation when a qualitative risk analysis method is most appropriate.
Average number of hours students spent : Review the data involving the average number of hours students spent on their smartphones from 2002-2015. Predict the number of hours students
What inference can be drawn from the companies free : Walmart generates more revenues from its assets than Google. Walmart's business model is setup to create this type of environment.
The majority owner will win the director positions : How many candidates favored by the majority owner will win the director positions?
Medication available is flagyl oral suspension : The medication available is Flagyl oral suspension labeled 125mg/5ml, how many mL will the nurse administer per dose? Round your answer to the nearest tenth
List three possible future extensions to the work presented : List at least three possible future extensions to the work presented in your resource. These extensions could include broadening the scope or investigating.
Find the height of the cloud above the ground : How to represent this on a diagram and by using the information given find the height of the cloud above the ground?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd